US Stock Futures Await Inflation Data Amid Tariff Uncertainty
Key Points:
* Dow Jones futures (YM) and S&P 500 futures (ES) declined slightly, while Nasdaq 100 futures (NQ) remained near flat.
* Consumer Price Index (CPI) report expected to show easing inflation, impacting expectations for interest rates.
* Federal Reserve Chairman Jerome Powell has indicated a cautious approach to policy changes.
* Markets await further tariff announcements from President Trump.
* Earnings season continues with results from Reddit and Robinhood in focus.
Inflation Data Test
The CPI report, scheduled for release at 8:30 a.m. ET, is crucial for market players awaiting guidance on interest rates. Economists forecast a 2.9% annual headline inflation rate and a 0.3% monthly increase for January. Annual core inflation, excluding volatile food and energy prices, is expected to decline to 3.1%, the lowest since April 2021.
Market Impact
Traders have reduced bets on Fed rate cuts and now anticipate only one reduction this year. The report could further influence market sentiment.
Tariff Speculations
Markets remain alert to potential policy surprises from President Trump, who is anticipated to announce reciprocal tariffs.
Earnings Season
Earnings season continues with a focus on Reddit results, given Wall Street's high expectations. Robinhood, which recently touched a three-year high, is also scheduled to report.
Other Market Updates
* Gold prices retreated from a record high as investors assessed the Fed's stance on interest rates.
* China's AI-driven stock surge gains support from Wall Street strategists.
* Alibaba shares surged on news of its collaboration with Apple on AI initiatives in China.