Futures Rise Despite Inflation Data, PPI and Earnings in Focus

U.S. stock futures moved upward despite a hot inflation report for January, dimming hopes for an imminent interest rate cut. Dow Jones futures (YM=F) gained 0.1%, Nasdaq futures (NQ=F) advanced 0.4%, while S&P 500 futures (ES=F) edged up 0.2%.

Inflation Concerns Persist

January's inflation report indicated consumer prices rising more sharply than anticipated, remaining near 3%. This increases the likelihood of the Federal Reserve maintaining interest rates for the foreseeable future as it monitors inflation's convergence with the 2% target.

After-Hours Trading Movement

Reddit (RDDT) shares declined in after-hours trading Wednesday, following earnings showing a shortfall in user growth. Conversely, Robinhood (HOOD) surged after posting fourth-quarter profits that exceeded expectations.

Thursday's Economic and Earnings Releases

On Thursday, the producer price index (PPI) will be released at 8:30 a.m. ET, providing insight into inflation at the wholesale level. Analysts project a 0.3% uptick. AirBnB (ABNB), Roku (ROKU), and Coinbase (COIN) are scheduled to report earnings.

Trade War Tensions

President Trump's ongoing trade war remains a concern. While the announcement of retaliatory tariffs has not been finalized, he has indicated the possibility by the end of the week.

Asian Markets Gain

Asian shares rose on Thursday, fueled by optimism surrounding potential peace talks between the U.S. and Russia over the Ukraine crisis and hype surrounding AI technology. Japan's Nikkei 225 (^N225) climbed 1.3%, South Korea's Kospi (^KS11) gained 0.9%, while Shanghai Composite (000888.SS) slipped 0.2%.

Energy Market Developments

Oil prices fell, with Brent crude (BZ=F) dropping 2.7% to below $72 per barrel, partially due to optimism over peace talks. This decline, coupled with a 3% drop in Exxon Mobil's (XOM) stock, contributed to market pressures.

Asian Market Focus

Despite the negative energy market developments, Asian investors remained optimistic about the potential resolution of the Ukraine conflict and China's growing tech sector, buoyed by the DeepSeek AI hype.