Key Points:
- U.S. stock index futures fell slightly on Thursday. The S&P 500 Futures dropped 0.11%, the Nasdaq 100 slipped 0.086%, and the Dow Jones Futures fell 0.14%.
- Fed Chair Jerome Powell’s positive comments boosted confidence in a potential soft landing for the economy.
- Upcoming consumer price index (CPI) data is expected to show easing headline inflation and persistent core inflation.
- Crude prices rose as U.S. inventories dropped, indicating tighter global supplies. Crude futures climbed 0.37%, while the Brent contract rose 0.43%.
U.S. stock index futures experienced a slight decline on Thursday as investors shifted their focus to the upcoming inflation data, which may influence future Federal Reserve monetary policy decisions. At 07:15 AM (ET), S&P 500 Futures dropped 6.25 or 0.11% to 5,681.75, Nasdaq 100 Futures slipped 18.00 or 0.086% to 20,881.75, and Dow Jones Futures fell 58.00 or 0.14% to 39,991.00
On Wednesday, Wall Street’s main indices rallied following positive comments from Fed Chair Jerome Powell. He noted recent signs of cooling in the U.S. economy but expressed confidence in a potential soft landing. The S&P 500 rose 1%, and the NASDAQ 100 Composite surged 1.1%, with both indices ending at record highs. The Dow Jones Industrial Average climbed 1.1%, approaching its record peak reached earlier this year.
During his semi-annual Congressional testimony, Powell mentioned that “more good data” would strengthen the case for the Fed to cut interest rates. He reiterated the Fed’s commitment to its 2% inflation target, putting the consumer price index (CPI) data, due later in the session, under scrutiny.
The CPI data is expected to show that headline CPI inflation eased slightly in June while core inflation remained persistent. The annual U.S. June headline CPI is anticipated to slow to 3.1%, while core CPI is projected to remain steady month-on-month at 0.2%.
Crude prices continued to rise on Thursday, extending recent gains as a drop in U.S. inventories boosted expectations of tighter global supplies. By 07:20 AM (ET), U.S. Crude oil futures climbed 0.37% to $82.40 a barrel, while the Brent Crude contract rose 0.43% to $85.45.
U.S. crude inventories fell by 3.4 million barrels last week, far exceeding expectations. In comparison, gasoline stocks fell by 2 million barrels, significantly more than the 600,000-barrel draw expected during the U.S. Fourth of July holiday week.
