U.S. stock futures are indicating a relatively flat start on Thursday, as traders assess recent inflation and employment figures.
Earlier in the session, futures suggested a modestly positive open, but the momentum faded following the release of consumer price and jobless claims reports.
The Labor Department revealed that U.S. consumer prices rose 0.4% in August, slightly higher than the expected 0.3%, following a 0.2% increase in July. The annual inflation rate accelerated to 2.9%, up from 2.7%, in line with economist forecasts. Core inflation, excluding food and energy, was up 0.3% for the month, keeping the yearly rate steady at 3.1%.
Meanwhile, first-time unemployment claims unexpectedly increased to 263,000 in the week ending September 6th, a rise of 27,000 from the revised 236,000 figure for the previous week. Economists had predicted a slight decline to 235,000. This is the highest level of initial claims since late October 2021.
These mixed signals could reinforce expectations for a Federal Reserve rate cut next week, but they also raise questions about the possibility of slowing economic growth or stagflation.
During Wednesday’s session, stocks started the day higher but gave up gains as trading progressed. The S&P 500 advanced 19.43 points, or 0.3%, to 6,532.04, while the Nasdaq inched up 6.57 points to 21,886.06. Conversely, the Dow Jones Industrial Average fell 220.42 points, or 0.5%, to 45,490.92, pressured by Apple (NASDAQ:AAPL) following its product launches and by declines in Salesforce (NYSE:CRM) and Amazon (NASDAQ:AMZN).
Markets initially reacted positively to producer price data, which showed a 0.1% decline in August, surprising analysts who had expected a 0.3% increase. Year-over-year producer price growth slowed to 2.6% from 3.1% in July.
Investor optimism was further fueled by a strong rally in Oracle shares, up 36%, as the company projected cloud infrastructure revenue to surge from $10.3 billion in fiscal 2025 to $144 billion by 2030, despite reporting slightly weaker first-quarter earnings.
The semiconductor sector also saw notable gains, lifting the Philadelphia Semiconductor Index 2.4% to a record closing high. Taiwan Semiconductor (NYSE:TSM) jumped 3.8% after reporting strong August revenues.
Gold stocks followed suit, pushing the NYSE Arca Gold Bugs Index up 2.2%. Energy, natural gas, and utility stocks performed strongly, while retail and biotech sectors also showed upward movement.
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