US stocks were set to open flat at Friday’s opening bell as markets closed lower on Thursday due to hotter-than-expected inflation data. The possibility of a June interest rate cut from the Federal Reserve has been dampened as a result.
S&P 500 futures were up 0.11% and Dow Jones Industrial Average futures gained 0.13% shortly before 6 a.m. ET, while Nasdaq 100 futures traded flat. The US Dollar Index also showed a slight increase of 0.11%.
Yields on 10-year US Treasurys remained flat after a bond sell-off in response to the inflation outlook on Thursday. The Producer Price Index (PPI) numbers indicated that US producer prices were rising faster than expected, leading to doubts about a potential rate cut in June.
Tech shares, which are more sensitive to rate expectations, saw a decline in stock prices. Companies like Tesla and Nvidia experienced losses of 4.1% and 3.4% respectively.
Danni Hewson, head of financial analysis at AJ Bell, commented on the situation, stating, “With less than a week to go until the next meeting of US central bankers, markets are having to face up to the prospect that the path to a pivot will be a long and winding one.”
Later in the day, US industrial production and capacity utilization data for February, along with the preliminary University of Michigan consumer sentiment index and the Empire State manufacturing survey for March, are set to be released. Additionally, manufacturing company Jabil is scheduled to report earnings.
Investors are closely monitoring these developments as they navigate the uncertainty surrounding potential interest rate cuts by the Federal Reserve.
