U.S. Stock Futures Steady Ahead of PPI Data, Ukraine Peace Talks Boost Sentiment

U.S. stock futures remain stable on Thursday as investors anticipate the Producer Price Index (PPI) report to assess the Federal Reserve's interest rate trajectory following the inflation surprise revealed yesterday.

PPI Data in Focus

The January Producer Price Index report is scheduled for release at 8:30 a.m. ET. Economists polled by Reuters predict a monthly increase of 0.3%.

Inflation Concerns Linger

Wednesday's Consumer Price Index report indicated the highest price surge in nearly a year and a half. This reinforces the Fed's stance that it's in no hurry to lower interest rates.

BNP Paribas economists caution that the PPI data will not alleviate policymakers' inflation fears, especially considering rising labor demand, higher inflation expectations, and potential tariff effects.

Trump Responds to Inflation

President Donald Trump emphasizes that the latest inflation data should not be attributed to his administration.

Fed Chair Jerome Powell, in his second day of congressional testimony, suggests that the data confirms the central bank's ongoing battle against inflation.

Fed Rate Expectations

Market expectations currently point to only one 25-basis-point interest rate cut from the Fed this year, according to LSEG data.

Persistent inflation signals may lead the Fed to be cautious about cutting rates at all in 2023.

Russia-Ukraine Peace Talks Encouraged

President Trump reports that Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls on Wednesday.

Premarket Trading

At 05:03 a.m. ET, Dow E-minis are down 0.03%, S&P 500 E-minis are down 0.02%, and Nasdaq 100 E-minis are up 0.11%.

Notable Company Updates

* Tesla gains 2.5% despite the overall market trend.
* Trade Desk plunges 27.1% after missing analyst estimates.
* Reddit drops 14.3% after failing to meet expectations for daily active users.
* Cisco Systems rises 6.2% following an increased revenue forecast.
* Robinhood Markets surges 15.7% after exceeding profit expectations.
* Deere & Co, Howmet Aerospace, and Moody's are expected to report earnings before the opening bell on Thursday.