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U.S. stock index futures showed modest gains early Thursday, as investors assessed the latest inflation data and anticipated a key speech from Federal Reserve Chair Jerome Powell. As of 05:55 ET (10:55 GMT), Dow Jones Futures were up 50 points (0.1%), S&P 500 Futures added 6 points (0.1%), and Nasdaq 100 Futures increased by 10 points (0.1%).
Wall Street’s main indices remained mostly unchanged on Wednesday, as the risk-on momentum seen after Donald Trump’s election victory appeared to lose some steam.
Powell’s Speech to Influence Sentiment
Investors are keenly focused on Jerome Powell’s upcoming address, looking for signals on the Federal Reserve’s monetary policy direction. The central bank recently cut interest rates by 25 basis points, and Powell’s insights on inflation trends will be closely scrutinized, particularly given concerns that President-elect Trump’s policies may boost price pressures and keep rates elevated.
The inflation report released Wednesday showed that headline inflation edged up slightly on an annual basis, while core inflation persisted above 3%. Following this data, market bets for a December rate cut rose significantly, with traders now assigning an 85.3% probability for a 25-basis-point reduction, up from 60.2% earlier in the week, as per CME’s FedWatch Tool.
Despite this, long-term inflation and interest rate forecasts remain uncertain. Expectations for potentially expansionary policies under Trump are fueling speculation that inflation and rates may stay high over the longer term.
The October Producer Price Index, set for release later today, could provide further clarity on these inflationary concerns.
Corporate Earnings on the Radar
On the corporate front, investors are awaiting quarterly earnings reports from Applied Materials and Walt Disney. Disney’s performance is particularly anticipated given its significant market influence.
Meanwhile, Cisco Systems’ stock dropped 4% in premarket trading after the company released a cautious full-year outlook and reported a fourth consecutive quarter of revenue decline. On the other hand, Advanced Micro Devices (AMD) saw its stock rise by 1.4% premarket, following news that the company will reduce its global workforce by 4%, affecting approximately 1,000 positions.
These developments, alongside Powell’s commentary, are expected to shape market sentiment and influence trading activity throughout the day.
