US Stock Futures Rise Amidst Inflation Concerns and Mixed Earnings Reports

Market Summary

Despite a hotter-than-expected inflation report, US stock futures gained traction on Thursday. Dow Jones futures (YM=F) increased 0.1%, Nasdaq futures (NQ=F) surged 0.2%, and S&P 500 futures (ES=F) climbed 0.2%.

Inflation Report Dampens Rate Cut Hopes

January's inflation report indicated a faster-than-anticipated rise in consumer prices, with inflation remaining near 3%. This data increases the likelihood that the Federal Reserve will maintain interest rates for the foreseeable future, awaiting inflation to converge towards its 2% target.

Mixed Earnings Reports

Reddit (RDDT) stock faced a plunge in after-hours trading following disappointing user growth reported in its earnings. Conversely, Robinhood (HOOD) soared after the bell, exceeding profit expectations in its fourth quarter.

Upcoming Data and Events

* The producer price index (PPI), reflecting wholesale price changes, is scheduled for release on Thursday at 8:30 AM ET. Analysts predict a 0.3% increase.
* Earnings announcements from AirBnB (ABNB), Roku (ROKU), and Coinbase (COIN) are also expected on Thursday.

Trump's Trade War Continues

President Trump's ongoing trade war with China remains a lurking concern. Despite a lack of specifics on timing, Trump has hinted at potential reciprocal tariffs by week's end.

Asian Markets Rally on Peace Hopes and Tech Strength

Asian markets rose on Thursday, fueled by optimism surrounding President Trump's dialogue with Russian President Vladimir Putin regarding the Ukraine conflict. Japan's Nikkei 225 (^N225) advanced 1.3%, South Korea's Kospi (^KS11) gained 0.9%, while China's Shanghai Composite (000888.SS) declined slightly by 0.2%.

Energy Markets Ease

Oil prices witnessed a decline, with Brent crude (BZ=F) falling 2.7% below $72 a barrel, partially due to positive sentiments surrounding the US-Russia peace talks. This dip, along with a 3% loss in Exxon Mobil's (XOM) stock, contributed to market pressures. However, Asian investors remained focused on the potential resolution of the Ukraine conflict and the robust growth of China's tech sector, fueled by DeepSeek AI hype.