Hey team, futures traded mixed early Thursday after CPI came in hotter than markets/Fed were looking for the prior day. All eyes are now focused on the 8:30 AM PPI release for further insight into the interest rate trajectory.
Let’s recap the last session and see what’s next!
Impact Snapshot
🟥 U.S. PPI Inflation - 8:30am
🟥 Unemployment Claims - 8:30am
Macro Viewpoint
U.S. stock futures held steady on Thursday as investors awaited the release of the Producer Price Index (PPI) data, looking for further insight into the Federal Reserve's interest rate trajectory following the previous day's inflation surprise.
Wednesday’s Consumer Price Index (CPI) reading revealed the sharpest rise in prices in nearly 18 months, reinforcing the Federal Reserve’s stance that it remains in no hurry to lower interest rates.
Fed Chair Jerome Powell, in his second day of congressional testimony, emphasized that the latest data provided further evidence that the fight against inflation was not yet over.
The spotlight will be on the January Producer Price Index report, set for release at 8:30 a.m. ET, with economists forecasting a 0.3% increase for the month.
