US stock futures experienced a slight uptick on Thursday as investors sifted through newly released inflation and employment data, which is influencing expectations for a potential quarter-point interest-rate cut next week.
Futures for the S&P 500 and Nasdaq 100 remained largely stable, following a day of remarkable gains driven by a surge in tech stocks. Meanwhile, Dow Jones Industrial Average futures edged up by approximately 0.1%.
The market is attempting to consolidate after a volatile Wednesday, which saw renewed excitement for tech growth stocks rescue the market from a downturn that was fueled by waning expectations for a larger-than-expected 0.5% interest rate cut by the Federal Reserve.
Recent consumer inflation data showed a slightly higher-than-anticipated core reading, which, although marginal, maintains pressure on the Federal Reserve to proceed with a 25 basis point rate cut in their upcoming decision on September 18. Trader forecasts suggest an 85% probability of this cut, a significant increase from nearly 50% just days ago.
In terms of producer prices, there was a 0.2% month-over-month increase in August, slightly surpassing economists’ expectations. Excluding food and energy costs, the Producer Price Index (PPI) rose by 0.3%, also above projections as noted by the Bureau of Labor Statistics.
Moreover, initial jobless claims rose more than anticipated, reaching 230,000 last week, a slight increase from the previous week.
On the corporate scene, tech investors were keenly observing reports that OpenAI is negotiating to raise funds at a staggering $150 billion valuation—more than double the company’s earlier $86 billion valuation this year.
As the financial landscape shifts amid these developments, stay tuned for updates that could impact market trajectories. The interplay of inflation, interest rates, and employment data continues to be pivotal for investors navigating these turbulent economic waters.