U.S. Futures Edge Lower Ahead of Key Inflation Report

U.S. stock index futures dipped slightly on Wednesday as investors awaited a crucial consumer inflation report that could influence the Federal Reserve’s monetary policy outlook.

At 05:50 ET (10:50 GMT):

• Dow Jones Futures fell 75 points (-0.2%)
• S&P 500 Futures declined 8 points (-0.1%)
• Nasdaq 100 Futures slipped 9 points (-0.1%)

On Tuesday, Wall Street ended mixed as Fed Chair Jerome Powell’s testimony reinforced expectations that rate cuts won’t come soon. The Dow rose 0.3%, the S&P 500 ended flat, and the Nasdaq fell 0.4%.

Inflation in Focus

Markets are closely watching the U.S. Consumer Price Index (CPI) report, which could influence the Fed’s next move. Economists expect:

• Annual CPI to hold at 2.9% (YoY) for January, matching December.
• Monthly CPI to ease to 0.3% from 0.4%.
• Core CPI (excluding food and fuel) to decline to 3.1% (YoY) from 3.2%, but rise 0.3% (MoM) from 0.2%.

Powell reiterated that the Fed is in no rush to cut rates, citing economic resilience and previous 1% rate cuts in 2024. He is set to testify before Congress on Wednesday, where Trump’s tariffs and inflation impact could be key topics.

Earnings in the Spotlight

• Cisco Systems (NASDAQ: CSCO) reports earnings after the closing bell, with a focus on AI-driven networking demand.
• CVS Health (NYSE: CVS) and Robinhood (NASDAQ: HOOD) will also release results.
• DoorDash (NASDAQ: DASH) surged 6% premarket after reporting strong Q4 revenue.
• Super Micro Computer (NASDAQ: SMCI) jumped 6% premarket, despite cutting its annual revenue forecast.
• Gilead Sciences (NASDAQ: GILD) gained 4% premarket after surpassing Q4 earnings expectations.

Oil Prices Slide After Inventory Surge

Crude oil prices declined after data showed an unexpected jump in U.S. crude stockpiles, weighing on sentiment.

At 05:50 ET:

• WTI crude fell 1.2% to $72.42 per barrel.
• Brent crude dropped 1.1% to $76.15 per barrel.

The decline follows a 9 million barrel surge in U.S. crude inventories last week, according to the American Petroleum Institute (API). Official data from the Energy Information Administration (EIA) is due later today.