The Market Brief
Hey team, U.S. futures contracts slipped on Thursday after Wednesday's rally saw the S&P 500 and Nasdaq close on a positive note following the CPI release.
Let’s recap yesterday’s session and see what’s next!
Impact Snapshot
🟥 PPI Inflation - 8:30am
🟥 Unemployment Claims - 8:30am
Macro Viewpoint
U.S. stock index futures slip on Thursday following gains in the S&P 500 and Nasdaq during the previous session, as investors awaited key economic data later in the day.
The S&P 500 advanced on Wednesday, while a surge in tech stocks propelled the Nasdaq above the 20,000-point mark for the first time. The rally followed a U.S. inflation report that heightened expectations of a Federal Reserve interest rate cut.
Market bets on a rate cut next week have climbed to over 98%, according to CME’s FedWatch Tool. These expectations strengthened after Friday’s jobs report revealed a rise in unemployment despite robust job growth.
However, traders also foresee a pause in rate cuts by January, as several Federal Reserve officials last week emphasised the need for caution in adjusting monetary policy, citing the economy's ongoing resilience.
Investors are now focused on the November producer price index, set to be released at 8:30 a.m. ET, along with the weekly jobless claims report, both of which will provide further insight into the economic outlook.
