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U.S. stock index futures traded near the flatline on Thursday as investors took a breather following recent record highs, awaiting new economic data to assess the health of the U.S. economy.
- Futures Movement (05:55 ET / 09:55 GMT):
- Dow Jones Futures: +29 points (+0.1%)
- S&P 500 Futures: -2 points (-0.1%)
- Nasdaq 100 Futures: -17 points (-0.1%)
The S&P 500 and Nasdaq Composite reached new all-time highs on Wednesday, while the Dow Jones Industrial Average rose more than 1%. The rally has been driven by expectations of a Federal Reserve interest rate cut in September, supported by signs of moderate inflation and a cooling U.S. labor market.
Upcoming Economic Data
Market participants are closely watching:
- Producer Price Index (PPI): To gauge if tariff-driven increases in goods costs are passing through the system.
- Weekly Unemployment Claims: Monitoring labor demand and workforce trends.
The probability of a Fed rate cut in September is currently priced at nearly 95% according to CME FedWatch. U.S. Treasury Secretary Scott Bessent suggested that a more aggressive half-point cut is possible, citing downward revisions in job growth for June and May.
Corporate Updates
- Cisco Systems (NASDAQ:CSCO): Shares fell premarket despite a stronger-than-expected first-quarter revenue outlook, noting some tariff-related impacts.
- Deere & Company (NYSE:DE) and Tapestry Inc (NYSE:TPR): Set to report quarterly results before the opening bell.
- Coinbase Global (NASDAQ:COIN): Gained following Bitcoin hitting another record high, benefiting the cryptocurrency exchange.
Investors are now balancing optimism from corporate earnings and record highs with caution as they await inflation, labor, and producer price data to gauge the trajectory of U.S. monetary policy and economic growth.
