Key Points
- US stock futures are stable ahead of PPI data and Powell’s comments.
- Traders largely expect a 25-basis point rate cut in December.
- The S&P 500 saw a slight decline of 0.08%, the Nasdaq 100 was down by 0.16%, and the Dow 30 index showed a slight gain of 0.08%.
- Walt Disney (NYSE: DIS) shares surged 10.12%, Cisco Systems Inc. (NASDAQ: CSCO) dropped 1.99%, and Tapestry Inc. (NYSE: TPR) shares rose 10.67%.
U.S. stock futures held steady on Thursday as investors anticipated the release of the October producer price index (PPI) and weekly jobless claims data. Federal Reserve Chair Jerome Powell’s remarks later in the day will also be closely watched for insights on the economy and upcoming monetary policy changes.
According to UBS Global Wealth Management’s chief economist Paul Donovan, the PPI data better reflects corporate pricing power than consumer price data, potentially supporting expectations for a rate cut in December. Market participants are pricing an 86% likelihood of a 25-basis point rate cut at the Federal Reserve’s December meeting, with confidence bolstered by Wednesday’s consumer price index data, which met forecasts.
Powell’s economic update in Dallas follows statements from Fed policymakers that are now focused on inflation risks as they deliberate on the timing and magnitude of rate cuts.
As of 9:41 AM (ET), the S&P 500 is trading at 5,980.83 USD, reflecting a slight decline of 0.08%. The Nasdaq 100 stands at 21,036.16 USD, down by 0.16%, signaling a minor dip in tech-heavy stocks. Meanwhile, the Dow 30 index shows a level of 43,946.47 USD, increasing by 0.08%, marking a slight gain.
After posting strong quarterly earnings, Walt Disney (NYSE: DIS) shares surged 10.40 or 10.12% to 113.12 USD. Cisco Systems Inc. (NASDAQ: CSCO) dropped 1.18 or 1.99% to 58.00 USD after aligning annual revenue forecasts with expectations. Tapestry Inc. (NYSE: TPR) shares rose 5.47 or 10.67% to 56.73 USD after announcing the termination of its $8.5 billion acquisition of Capri Holdings.
