Mixed Futures Ahead of PPI Report and ECB Decision
US stock futures were mixed on Thursday as investors awaited key data and events that could influence market sentiment. The Dow futures rose over 100 points, or 0.21%, while S&P 500 contracts gained 0.13%. However, Nasdaq 100 futures slipped 0.17% after three consecutive losing sessions.
The producer-price index (PPI) report is due at 8:30 am ET and may provide clues on whether the Federal Reserve can keep interest rates steady next week. Economists expect a 0.4% month-over-month increase in headline PPI, with core PPI rising 0.3%. Markets are pricing a roughly 60% chance of a quarter-point Fed rate hike.
The price of Brent crude remained above $100 a barrel, while the 10-year Treasury yield hovered near 4.85%, keeping inflation concerns alive. UBS Global Wealth Management's Mark Haefele noted that the psychological impact of $100 oil is significant, but earnings growth and structural investment should remain more important for equities.
The European Central Bank (ECB) is widely expected to raise its deposit rate by 25 basis points to 2.5% on Thursday. However, Christine Lagarde's guidance will be closely watched, as investors seek clarity on the ECB's future policy direction.