U.S. equity futures were trading mostly higher on Thursday, supported by a strong outlook from memory chipmaker Micron (NASDAQ:MU), although investors remain cautious ahead of the release of key U.S. inflation figures. In Europe, attention is split across several central bank policy decisions, with the Bank of England widely expected to be the only authority to ease monetary conditions.
Micron lifts tech sentiment as CPI looms
Wall Street futures showed modest gains in early trading, driven by strength in technology stocks after Micron delivered an upbeat earnings outlook. Even so, markets are bracing for the latest U.S. consumer price data, which could quickly shift sentiment.
By early morning in New York, S&P 500 futures were higher by around 18 points, while Nasdaq 100 futures climbed roughly 0.6%. Dow Jones futures edged lower, slipping about 0.1%.
Micron’s update helped offset recent disappointment from other major technology names, including Broadcom (NASDAQ:AVGO) and Oracle (NYSE:ORCL). Still, the broader market remains under pressure after another weak session, with the S&P 500 and Dow both extending their losing streaks to four days. The Nasdaq Composite lagged after a sharp drop in Oracle shares, following reports that a key backer had withdrawn from a $10 billion data centre project in Michigan.
With risk appetite fragile, investors are now focused on U.S. inflation data for clearer guidance on the Federal Reserve’s policy path in the year ahead.
Inflation report takes centre stage
Recent U.S. economic data point to a cooling labour market, with unemployment rising to a more than four-year high of 4.6%. That has increased scrutiny of Thursday’s consumer price index release, which brings inflation back into the spotlight.
While Fed officials have shown greater concern about employment trends than stubborn price pressures, the CPI figures remain critical. Both headline and core inflation are expected to come in at 3.0% year on year, matching the pace seen in September. Overall, progress toward the Fed’s 2% inflation target has stalled for over a year, with readings stuck in a relatively narrow range.
Micron signals sustained demand for chips
Market confidence had been shaken last week by lacklustre results from several companies exposed to artificial intelligence spending. Micron Technology has helped restore some optimism by forecasting a strong second quarter.
The company continues to see solid demand from data centres, driven by heavy investment from large cloud service providers. This trend is expected to persist, with Micron chief executive Sanjay Mehrotra telling investors that supply constraints mean the company is likely to meet only half to two-thirds of demand from certain major customers through 2026.
Micron’s products are used across a wide range of applications, from servers and personal computers to vehicles and smartphones. The group is also a key supplier of high-bandwidth memory, a crucial component in training and deploying generative AI models.
Bank of England in the spotlight
Several European central banks announce policy decisions on Thursday, but the Bank of England is expected to attract the most attention.
The European Central Bank is widely seen holding rates steady at 2%, potentially alongside slightly improved growth forecasts. Sweden’s Riksbank and Norway’s Norges Bank are also expected to keep policy unchanged.
In contrast, the BoE is expected to cut interest rates by 25 basis points to 3.75%, down from 4.0%, following a sharp slowdown in inflation and softer economic momentum. UK inflation data released on Wednesday reinforced expectations of an imminent rate cut, even though at 3.2% inflation remains the highest among G7 economies.
Markets are currently pricing in just one additional BoE rate cut in 2026, most likely by the end of April, although expectations for a second cut increased after the November inflation data.
Oil prices rebound on Venezuela developments
Oil prices moved higher after U.S. President Donald Trump ordered a blockade of sanctioned oil tankers entering and leaving Venezuela, raising concerns over possible supply disruptions.
Brent crude futures rose 0.7% to $60.08 a barrel, while U.S. West Texas Intermediate gained 0.8% to $56.24.
The move followed Tuesday’s announcement that tankers carrying Venezuelan oil already under U.S. sanctions would be targeted, intensifying pressure on President Nicolás Maduro’s government.
“The key questions are, first, how effective this blockade will be, and second, how long it will last. This will be important in determining the impact on the oil market,” ING analysts said in a note.
Despite the bounce, oil prices remain on track for weekly declines of close to 2%, weighed down by expectations of oversupply and the possibility of a peace agreement in Ukraine.
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