U.S. Stock Futures Rise Despite Hot Inflation Report
Dow Jones futures (YM=F) advanced 0.1%, Nasdaq futures (NQ=F) climbed 0.4%, and S&P 500 futures (ES=F) gained 0.2%. The January inflation report revealed that consumer prices exceeded forecasts, with inflation remaining near 3%.
Fed to Maintain Rates
The data increases the likelihood of the Federal Reserve pausing interest rate hikes in the near term as it monitors inflation's return to its 2% target.
Mixed After-Hours Earnings
Reddit (RDDT) shares declined in after-hours trading following disappointing user growth figures. Conversely, Robinhood (HOOD) surged after posting better-than-expected fourth-quarter earnings.
Thursday's Key Events
* Release of the Producer Price Index (PPI) at 8:30 a.m. ET, with analysts anticipating a 0.3% increase.
* Earnings reports from AirBnB (ABNB), Roku (ROKU), and Coinbase (COIN).
Ongoing Trade War
President Trump's ongoing trade war remains a potential source of market volatility, with the possible announcement of reciprocal tariffs by the end of the week.
Asian Markets Rise on Peace Talks Optimism
Asian shares rallied on Thursday, driven by hopes of a US-Russia summit to end the Ukraine conflict and excitement surrounding artificial intelligence (AI) developments. Japan's Nikkei 225 (^N225) gained 1.3%, while South Korea's Kospi (^KS11) rose 0.9%.
Energy Market Pressures
Oil prices declined, with Brent crude (BZ=F) falling 2.7% due to optimism over peace talks. Exxon Mobil's (XOM) 3% stock drop contributed to market pressures.
Focus on Tech
Asian investors remained optimistic despite the market setbacks, as they anticipated a resolution to the Ukraine crisis and continued growth in China's tech sector, fueled by the DeepSeek AI hype.