US stock futures traded flat on Thursday morning as investors awaited critical inflation data. Markets are looking for new clues about the Fed’s interest rate cut path with the release of the August Consumer Price Index (CPI).
Yesterday’s surprise drop in producer inflation (PPI) data strengthened expectations that the Fed will cut interest rates by 25 basis points next week. However, weak job market data suggests that some investors are keeping the possibility of a 50 basis point rate cut on the table. The Dow E-minis rose slightly by 0.05%, the S&P 500 by 0.12%, and the Nasdaq 100 by 0.20%. On Wednesday, the S&P 500 and Nasdaq both hit all-time high closes. A 36% jump in Oracle shares triggered a strong rally in AI-focused technology stocks.
Meanwhile, crypto-related stocks and weapons manufacturers also continued their upward trend. According to analysts, moderate inflation and slowing employment are creating a strong case for the Fed to cut interest rates this month.
