US stock futures rise as traders await key inflation data and react to FedEx and Nike earnings
On Thursday evening, US stock futures edged higher as traders anticipated the release of the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, according to CNBC.
Futures tied to the Dow Jones Industrial Average rose by 39 points, or 0.1 percent, while S&P 500 and Nasdaq 100 futures each increased by 0.1 percent.
In after-hours trading, FedEx and Nike shares surged following the release of their quarterly earnings results. FedEx gained approximately 8 percent, while Nike advanced more than 7 percent.
During the regular trading session on Thursday, the Dow Jones Industrial Average posted a modest 15-point gain, breaking its 10-day losing streak, the longest since 1974. This marked the Dow’s first positive session since December 5, when it had fallen over 200 points.
Meanwhile, the S&P 500 and Nasdaq Composite experienced slight losses as rising 10-year Treasury yields, which climbed for a second consecutive day, continued to pressure stocks.
Investors are closely watching November's PCE report, scheduled for release on Friday. Analysts polled by Dow Jones predict the index will rise by 0.2 percent month over month, with an annual increase of 2.5 percent.
US Core inflation, excluding food and energy, is also expected to show a monthly gain of 0.2 percent and an annual increase of 2.9 percent.
Federal Reserve Chair Jerome Powell indicated earlier this week that the PCE report is likely to show inflation exceeding the central bank’s 2 percent target.
Mike Dickson, head of research and quantitative strategies at Horizon Investments, commented on the anticipated market reaction, saying, “Whatever the reaction is going to be, it’s probably going to be more severe one way or the other than it would have been prior to seeing the Fed really increase those expectations.”
The Fed recently cut interest rates by a quarter point and signalled it would likely reduce rates only twice in 2025, fewer than previously forecast.
This announcement led to a sharp market downturn on Wednesday, with all three major indexes posting significant losses.
Heading into Friday, the S&P 500 and Dow Jones are down over 3 percent for the week, while the Nasdaq Composite has dropped more than 2 percent.
Investors are also awaiting the University of Michigan’s consumer sentiment index, which is expected to provide additional insight into economic conditions.
