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U.S. stock index futures remained subdued on Thursday amid light trading activity ahead of the Easter break, as investors awaited additional data to assess the Federal Reserve’s policy direction on the final business day of a robust first quarter.
The three main indexes were poised for significant quarterly gains, driven by an artificial intelligence-driven rally and optimism surrounding the Fed’s rate-cut signals, which propelled Wall Street to record highs earlier this month.
The blue-chip Dow Jones Industrial Average was within striking distance of the historic 40,000 level, trailing just 0.6% below the milestone for the first time.
In the previous session, all three indexes concluded higher, with the Dow surging over 1% to mark its strongest daily advance this year, while the S&P 500 notched an all-time closing peak.
Investor attention is focused on the final readings of fourth-quarter GDP, the University of Michigan’s consumer sentiment survey, and the weekly jobless claims data.
As the long weekend approaches, market participants are also keenly awaiting the release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation metric, scheduled for Good Friday when U.S. markets will be closed. A surprise uptick in inflation could potentially temper market optimism regarding early rate cuts.
Federal Reserve Governor Christopher Waller’s recent remarks indicated that disappointing inflation data support delaying rate cuts in the short term, although he did not rule out potential rate reductions later in the year.
According to the CME FedWatch tool, traders assign a 64% probability of the Fed commencing its easing cycle in June.
At 07:00 a.m. ET, Dow e-minis edged down 5 points, or 0.01%, while S&P 500 e-minis slipped 2.5 points, or 0.05%. Nasdaq 100 e-minis retreated 11.75 points, or 0.06%.
Among individual stocks, chipmaker Nvidia (NVDA) saw a 0.5% decline in pre-market trading after experiencing over 2% declines in the preceding two sessions. Nevertheless, the AI leader remains on track for over 80% gains this quarter.
The Philadelphia Semiconductor Index is poised to conclude its second consecutive quarter with double-digit gains.
Take-Two Interactive Software (TTWO) dipped 1.3% after announcing its acquisition of Gearbox Entertainment, renowned for the Borderlands franchise, from Sweden’s Embracer for $460 million.
Cryptocurrency and blockchain-related firms saw gains as bitcoin rebounded following a two-day slide. Exchange operator Coinbase Global (COIN), software company MicroStrategy, and crypto miner Riot Platforms (RIOT) rose between 2.2% and 2.6%.
