- Prior to important US inflation data that could determine how far the Federal Reserve's cycle of tightening monetary policy will go, us equities index futures increased on Thursday.
- As of 5:55 AM in New York, futures contracts for the S&P 500 were up 0.5%, while those for the Nasdaq 100 were up 0.3%. Yesterday, the benchmark index fell to its lowest level since November 2020 as worries grew over the effects of the Fed's hawkish policies, particularly on rate-sensitive industries like semiconductors. While the dollar fell on currency markets, the Stoxx 600 index of Europe held steady.
- Future monthly consumer pricing data may determine whether the Federal Reserve makes a fourth consecutive large increase in interest rates. Thursday's data is anticipated to show a modest slowdown to 8.1% annually, although attention is focused on the figure for the core category, which excludes food and energy. This is observed to have increased 6.5% over the previous year and is back at a four-decade high reached in march.
- Any indication that pricing pressures are still high could cause markets to go into sell mode, as happened on Wednesday when an above-forecast reading for producer prices wiped out a shaky stock advance. Additionally, it would increase government yields and the value of the dollar, potentially extending its roughly 15% gain for the year.
