U.S. stock futures suggest a flat open for Thursday, hinting at a quiet start after two sessions of gains. Investors may adopt a cautious stance as they await key earnings and economic data.
Nvidia (NASDAQ:NVDA) shares slipped 0.3% in pre-market trading, despite the company reporting second-quarter results that broadly beat expectations. Weakness in data center sales weighed on the AI leader, tempering enthusiasm.
Attention is now turning to Friday’s Commerce Department report on personal income and spending for July, which includes the Federal Reserve’s preferred measures of consumer price inflation. Analysts forecast a slight rise in the annual core inflation rate to 2.9% from June’s 2.8%, a development that could influence interest rate expectations.
CME Group’s FedWatch tool currently assigns an 85.3% probability of a quarter-point rate cut at the Fed’s September meeting.
Following a choppy session on Tuesday, U.S. equities extended modest gains on Wednesday. The S&P 500 reached a new record closing high, while the major indexes posted only moderate increases. The Dow Jones Industrial Average added 147.16 points, or 0.3%, to 45,565.23. The Nasdaq rose 45.87 points, or 0.2%, to 21,590.14, and the S&P 500 climbed 15.46 points, or 0.2%, to 6,481.40.
Despite Nvidia’s anticipated earnings, trading remained subdued, as investors hesitated without fresh economic data to guide positions.
Energy stocks led the day, boosted by rising oil prices. The Philadelphia Oil Service Index jumped 2.1%, while the NYSE Arca Oil Index increased 1.7%. Computer hardware stocks also performed well, with the NYSE Arca Computer Hardware Index gaining 1.3%.
Meanwhile, software and telecom sectors showed modest strength, whereas brokerage shares moved lower, reflecting investor caution ahead of the week’s key reports.
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