New York City, NY – Stock futures took a dip Thursday morning as investors awaited the release of a crucial inflation report. The Dow Jones Industrial Average futures fell by 0.2%, trading 87 points lower, while S&P 500 futures and Nasdaq-100 futures both dropped by the same percentage.
The producer price index for March is expected to be released at 8:30 a.m. ET, with economists forecasting a 0.3% increase in wholesale prices for the month, excluding food and energy. This report follows a turbulent day on Wall Street, where stocks sold off after a surprisingly high consumer price index reading for March. Concerns arose that the Federal Reserve might make fewer rate cuts than anticipated, leading to adjustments in market forecasts.
Goldman Sachs chief economist Jan Hatzius revised the firm’s predictions in response to the unexpected inflation data. He now sees the potential for two rate cuts in 2024, down from the previous projection of three. The first rate reduction is now anticipated to occur in July.
The stock market experienced a significant downturn on Wednesday, with the Dow Jones Industrial Average losing 1.1%, the S&P 500 dropping by 0.95%, and the Nasdaq Composite sinking 0.84%. The start of earnings season continues on Thursday, with CarMax, Fastenal, and Constellation Brands among the companies reporting results before the bell. The period will officially kick off with earnings reports from JPMorgan, Wells Fargo, and Citigroup on Friday.
Investors remain cautious as the market awaits further economic data and corporate reports to gauge the ongoing impact of inflation on the economy. The Federal Reserve’s response to recent developments will be closely monitored as policymakers navigate the delicate balance between supporting economic growth and managing inflationary pressures.