Last updated: 10:16 AM EST
Stock indexes have been mixed so far (Nasdaq 100Nedix) fell more than 0.9% despite today’s lower-than-expected inflation report. In fact, the core CPI, which excludes volatile energy and food prices, came in at 3.3% year-on-year and 0.1% month-on-month. For reference, economists were expecting the former to be 3.4% and the latter to be 0.2%. Moreover, the annual and monthly headline CPI numbers came in at 3% and -0.1%, respectively, below expectations of 3.1% and 0.1%.
These results would likely strengthen the case for a rate cut and give the Federal Reserve an opportunity to cut rates. In fact, traders are estimating the likelihood of a rate cut in September at 81.3%, according to the CME FedWatch tool.
In other news, the Department of Labor released a stronger than expected initial jobless claims report, with 222,000 people filing for unemployment benefits for the first time last week compared to the forecast of 236,000.
Additionally, continuing claims for unemployment insurance, which measures the number of unemployed people still eligible for unemployment insurance, came in at 1.852 million, below the expected 1.86 million and down from the 1.856 million reported last week.
First Published: 5:02 AM EST
U.S. futures were slightly lower on Thursday morning as investors awaited a key inflation report that will give an idea of the trajectory of the Federal Reserve’s interest rates. Nasdaq 100 futures (Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) were down about 0.06%, 0.05%, and 0.06%, respectively, as of 4:27 a.m. ET on July 11.
During yesterday’s trading session, the S&P 500 and Nasdaq Composite Index both closed at record highs, rising 1.02% and 1.18%, respectively. Additionally, the Dow Jones Industrial Average rose 1.09%. This increase was driven by the stock of Nvidia (NVDA), apple (AAPL), Advanced Micro Devices (Am), Microsoft (MSFT),alphabet(Google).
On the economic calendar today, Consumer Price Index (CPI) data for June is scheduled to be released at 8:30 a.m. ET. Economists expect annual inflation to fall for the third consecutive month from 3.3% in May to 3.1% in June 2024, the lowest since January.
Moving on to corporate earnings, Delta Airlines (Dal), PepsiCo (Pep), and Conagra Brands (CAG) is due to announce the results today.
Meanwhile, the 10-year U.S. Treasury yield is rising and is hovering around 4.29% at the time of writing. At the same time, WTI crude oil futures are also on an upward trend, hovering around $82.48 per barrel as of last check.
Meanwhile, European markets opened higher as investors await a key US inflation reading due for release today.
Asia Pacific markets rise on Thursday
Asia-Pacific stock indexes rose today, as a surge in artificial intelligence (AI) chip stocks and growing hopes of an interest rate cut by the U.S. central bank boosted investor sentiment across the region.
Hong Kong’s Hang Seng Index rose 2.06%. Similarly, Japan’s Nikkei and TOPIX rose 0.94% and 0.69%, respectively. Furthermore, China’s Shanghai Composite and Shenzhen Composite Indexes rose 1.06% and 1.99%, respectively.
Interested in more economic insights? Join us for a live webinar.
Disclosure
