U.S. Stock Futures Rebound as Investors Turn to Earnings and Inflation Data

U.S. stock futures moved higher on Thursday, rebounding from the previous session’s pullback as investors refocused on a fresh round of corporate earnings and awaited key inflation data that could shape expectations for Federal Reserve policy.

By 05:50 ET (10:50 GMT), Dow Jones futures were up 155 points, or 0.3%, while S&P 500 futures and Nasdaq 100 futures each gained about 0.3%. The early gains followed a modest retreat on Wall Street on Wednesday, which snapped a three-day winning streak.

In the prior session, stocks edged lower after a stronger-than-expected U.S. jobs report pushed back market expectations for the timing of the next Fed interest rate cut. The Dow Jones Industrial Average slipped 0.1% but remained comfortably above the 50,000 level it breached earlier in the week. The S&P 500 closed marginally lower, while the Nasdaq Composite fell 0.2%.

Jobs data tempers Fed cut expectations

Wednesday’s data showed that U.S. nonfarm payrolls rose by 130,000 in January, significantly beating expectations, while the unemployment rate edged down to 4.3%. The figures reinforced confidence in the resilience of the U.S. economy but also reduced the likelihood of near-term monetary easing, prompting traders to dial back bets on imminent rate cuts.

The report also featured revisions to prior data that underscored underlying softness in job growth over the past year, adding nuance to the otherwise upbeat headline figures.

Investors will have more labor market data to digest later on Thursday with the release of weekly initial jobless claims, ahead of Friday’s closely watched consumer price index report. The CPI data is expected to be a key input for markets assessing the inflation outlook and the Fed’s next policy steps.

Earnings season rolls on

Corporate earnings remained firmly in focus, with the fourth-quarter 2025 reporting season now past its midpoint. Results so far have been broadly encouraging, with companies largely beating expectations, upward revisions to forecasts, and earnings growth holding in double-digit territory.

Restaurant Brands International is among the companies set to report before the opening bell, while Arista Networks and semiconductor equipment maker Applied Materials are scheduled to release results after the close.

Some earnings news weighed on individual stocks. Cisco Systems slid sharply in premarket trading after the networking equipment maker reported quarterly gross margins that fell short of analysts’ estimates. The company has been impacted by higher memory chip prices, as heavy global investment in data centers to support artificial intelligence models has tightened supply and driven up costs for key components used in routers and switches.

In contrast, McDonald’s delivered a positive surprise, beating Wall Street expectations for fourth-quarter global comparable sales and profit. The fast-food giant benefited from value meal offerings and effective marketing campaigns that attracted cost-conscious U.S. consumers, while demand remained solid in Australia and the U.K.

Overall, markets entered Thursday balancing optimism around corporate earnings with caution ahead of inflation data, as investors assess whether economic strength will keep the Federal Reserve on hold for longer.