US stock futures slipped on Thursday, with investors braced for a crucial inflation reading key to assessing how quickly the Federal Reserve will start cutting interest rates and whether stocks’ recent rally will revive.
Dow Jones Industrial Average (^DJI) futures led the small declines, down roughly 0.3%, while S&P 500 (^GSPC) futures shed 0.2%. Contracts on the tech-heavy Nasdaq 100 (^NDX) were also about 0.2% lower, after all three gauges closed with losses.
The looming release of the PCE index data — the Fed’s preferred measure of inflation —has weighed on stocks all week. Policymakers have repeatedly stressed they want to see more signs of price pressures easing before committing to rate cuts.
Given that, investors are watching for signs of cooling in the January personal consumption expenditure update due later Thursday morning. But expectations are for a 0.4% month-on-month rise in “core” inflation, a marked increase on the 0.2% rate in December.
Hotter-than-expected prints in recent consumer and producer inflation data have the market on edge for a disappointing PCE print — a further sign of stalled progress that could persuade the Fed to stand pat.
Meanwhile, bitcoin (BTC-USD) traded just below $64,000 overnight, though it has pared gains early Thursday. After a roaring rally — the likes of which hasn’t been seen since the run-up to the “crypto winter” of 2022 — the leading digital currency is still within range of a fresh all-time high.