U.S. stock futures rose slightly on Thursday as investors awaited new inflation and labor data to test rising hopes for a quarter-percentage-point rate cut next week.
S&P 500 (ES=F) and Nasdaq 100 (NQ=F) futures rose about 0.2% after a sharp close boosted by the tech rally. Dow Jones Industrial Average futures (YM=F) also rose about 0.2%.
After Wednesday’s mixed performance, the market is regrouping. Stocks are recovering from their downtrend as expectations for a 0.5% rate cut by the Federal Reserve have waned and expectations for tech growth have picked up.
The new “core” consumer price inflation rate came in higher than expected. It was slightly higher than expected, but enough to keep the Fed on track to raise rates by 25 basis points at its September 18 decision. Trader’s Probability The reduction in that size is now 85%, up from about 50% just a few days ago.
Read more: Fed Forecast 2024: What Experts Say About Likely Rate Cuts
Now, watch for Thursday’s wholesale inflation and unemployment updates to get a reality check on those rate bets. The producer price index for August is expected to rise from July’s figure, and weekly jobless claims are expected to come in slightly lower.
Meanwhile, investors interested in the technology have heard that OpenAI is in talks to raise money at a valuation of $150 billion, more than double the $86 billion it had forecast earlier this year.
