US stock futures experienced an uptick on Thursday as investors evaluated the latest consumer price index data, which indicated easing inflationary pressures. This development has the potential to influence expectations regarding future interest rate adjustments by the Federal Reserve. Notably, S&P 500 futures displayed a rise of approximately 0.6%, while Nasdaq 100 futures climbed by 1%. In contrast, Dow Jones Industrial Average futures showed a modest increase of 0.3%. This upward momentum followed a technology-driven sell-off that had previously shaken Wall Street.
The stock market was relatively stable after the release of the Consumer Price Index (CPI) report, which revealed a year-over-year inflation increase of 2.7% in November, and a core inflation rate—excluding volatile food and energy prices—of 2.6%. However, some economists caution that this inflation data may not be entirely reliable, citing the disruptions caused by the recent US government shutdown. The original CPI report was delayed, and month-on-month comparisons were absent due to complications in data collection.
Attention is currently focused on the Federal Reserve’s awareness of potential weaknesses in the labor market, rather than inflation. Fed Governor Chris Waller recently expressed support for rate cuts even prior to the CPI figures being announced. Consequently, the markets appear to be less concentrated on inflation metrics than they might typically be.
In terms of job data, the upcoming report on preliminary unemployment claims should provide further insight, though there have been notable fluctuations in these figures linked to the impact of the federal shutdown.
As Wall Street continues to navigate challenges in the tech sector, companies like Oracle have faced setbacks, notably losing vital support for a significant data center project valued at $10 billion. This development led to a decline in Oracle’s stock, which negatively impacted other major firms, such as Nvidia and Broadcom.
Despite broader concerns, earnings from chipmaker Micron Technology were more optimistic, underscoring strong demand for AI technology. The company projected second-quarter profits nearly double analysts’ forecasts, causing its stock to rise in premarket trading.
In corporate developments, Trump Media & Technology Group announced a merger with TAE Technologies, a fusion power company backed by multinational corporations Alphabet and Chevron. This all-stock deal, valued at $6 billion, led to a surge in Trump Media’s stock, as the deal is viewed as a strategic move to capitalize on demand for AI-driven energy solutions.
Meanwhile, futures across major stock indices rose following the CPI data, with the Nasdaq 100 leading the charge with an increase of about 1.2%, representing over 300 points. E-Mini S&P 500 and Mini Dow Jones Industrial Average futures increased by 0.8% and 0.5%, respectively. In the fixed income arena, yields on 10-year US Treasuries fell approximately 0.7% shortly after the inflation data was released. The CPI figures surprised analysts, coming in at 2.7%—lower than the expected 3.1%—while the core CPI also underperformed expectations.
Overseas, the FTSE 100 in London showed little movement following the Bank of England’s decision to reduce interest rates to their lowest levels in nearly three years, amid concerns over the labor market and expectations of falling inflation rates.
Looking ahead, the economic agenda includes the latest unemployment claims data, the November CPI statistics, and business outlook reports from the Philadelphia and Kansas City Federal Reserve districts. Key earnings announcements are also anticipated, with companies such as Accenture, NIKE, and FedEx set to report.
As the market remains volatile, investors will be paying close attention to both macroeconomic indicators and corporate performances to gauge future developments.
