Stock futures experienced a decline on Thursday as investors braced for another critical inflation report. Futures tied to the broad market index dropped by 0.3%, while those linked to the Dow Jones Industrial Average fell by 65 points, or 0.2%. Nasdaq 100 futures also decreased by 0.5%. The Nasdaq’s decline on Thursday morning reversed the previous day’s gains, where beleaguered tech stocks saw a rise, lifting the S&P 500 by 0.5%. The Nasdaq Composite increased by 1.2% due to gains from Nvidia and Palantir Technologies. However, the 30-stock Dow continued its losing streak, falling by 0.2%. Investors are now awaiting the producer price index data from last month. February’s consumer price index came in softer than expected, with headline inflation rising by 0.2% from the prior month and 2.8% annually. This report may have alleviated traders’ concerns about the economy and the impact of tariffs on inflation. Despite a potential technical bounce after the recent sell-off, some market strategists believe the latest inflation figures aren’t enough to trigger a significant rebound. Concerns over President Trump’s trade policies persist, affecting investor sentiment and raising questions about the Federal Reserve’s interest rate decisions. “We still believe the next Fed rate move is lower, but it is hard to have high confidence with the impact of tariffs still uncertain,” said Scott Helfstein, Global X’s head of investment strategy. “The key question is whether tariffs will have a greater impact on growth or prices. In recent weeks, the rates market has signaled that weaker growth is the bigger concern with three cuts now being priced for this year.” All three major averages are on pace for steep declines this week. The S&P 500 and Nasdaq are set for losses of about 3%, while the Dow is down 3.4%, heading for its worst week since March 2023. The broad market index briefly dipped into correction territory on Tuesday, down 10% from a record set in February. — news from CNBC
