New York City – Stock futures edged lower on Thursday as investors awaited the release of another key inflation report. Futures tied to the broad market index were down by 0.2%, while futures linked to the Dow Jones Industrial Average dropped 52 points, or 0.1%. Nasdaq 100 futures also decreased by 0.3%.
Tech stocks, which have been struggling recently, saw a boost on Wednesday as investors bought up shares, causing the S&P 500 to rise by 0.5%. The Nasdaq Composite surged by 1.2%, buoyed by gains from companies such as Nvidia and Palantir Technologies. However, the Dow experienced its third consecutive day of losses, falling by 0.2%.
Investors are now eagerly awaiting the release of last month’s producer price index to get a better understanding of inflation. The consumer price index for February, which was released on Wednesday morning, showed a softer-than-expected increase of 0.2% from the previous month and 2.8% on an annual basis.
Despite the slight relief from the latest inflation data, concerns still linger over the impact of tariffs on the economy. President Donald Trump’s tariffs on steel and aluminum went into effect on Wednesday, prompting Canada to impose a 25% retaliatory levy on over $20 billion worth of U.S. goods.
Analysts believe that while there may be a technical rebound in the market after the recent sell-off, the inflation data might not be enough to spur a significant recovery. The uncertainty surrounding Trump’s trade policies continues to weigh on investor sentiment, casting doubt on how the Federal Reserve will approach interest rates.
So far this week, all three major stock indexes are on track to record significant losses. The S&P 500 and Nasdaq are each facing losses of around 3%, while the Dow is down by 3.4%, heading towards its worst week since March 2023. The S&P 500 briefly entered correction territory on Tuesday, dropping by 10% from its peak in February.