US stock futures fell on Thursday as traders anticipated a critical inflation estimate that would determine when the Federal Reserve will begin reducing interest rates and if the recent surge in stocks would continue.
Heavy Losses
The Dow Jones Industrial Average (^DJI) futures had the biggest decreases, falling about 0.3%, followed by the S&P 500 (\GSPC) futures, which dropped 0.2%. The tech-heavy Nasdaq 100 (<NDX) saw a 0.2% decrease in contracts as well, following the closing losses on all three gauges.
Stocks have been negatively impacted all week by the impending release of the PCE index data, which is the Fed’s favorite indicator of inflation. Before committing to rate reduction, policymakers have emphasized time and again that they need to see more indications of the price pressures abating.
Consumer Inflation Data
PHOTO: Bloomberg
Due later on Thursday morning, investors are keeping an eye out for any indications of a slowdown in the January personal consumption expenditure update. However, “core” inflation is expected to increase by 0.4% month over month, which is a significant increase from the 0.2% pace in December.
Market watchers are bracing for a weak PCE print, which would be another indication of stagnant growth and a reason for the Fed to hold steady, following hotter-than-expected readings in recent producer and consumer inflation data. On Thursday, Austan Goolsbee of Chicago and a number of other officials are expected to speak; this could provide additional insight into policies.
The price of bitcoin (BTC-USD) decreased slightly early on Thursday, but it still traded at just less than $64,000 overnight.
