U.S. stock index futures were weak on Thursday as investors anticipated further data on the economy and the Federal Reserve's policy direction. Activity is expected to be quiet before a long weekend.
The Dow (.DJI) rose more than 1% and the S&P 500 (.SPX) reached an all-time high on Wednesday. On Thursday, fourth-quarter GDP, the University of Michigan's consumer mood survey, and weekly unemployment claims data will be released.
The Fed's favored inflation barometer, the Personal Consumption Expenditures Price Index (PCE), is expected on Good Friday, when the U.S. stock market will be closed. A spike in inflation could temper market enthusiasm for early rate reduction.
Overnight, Fed Governor Christopher Waller said recent lackluster inflation data supports the U.S. central bank's decision to hold off on decreasing its short-term interest rate target, but he did not rule out cutting rates later this year.
"His words echo those of Bostic, another hawk, who last week said he sees only one cut this year," Societe Generale strategists wrote. "This puts the Fed on course for a split vote over what to do with interest rates in June if the next three inflation data points do not reassure, or thinking of the dual mandate, employment trends do not deteriorate." The CME FedWatch tool predicts a 60% chance the Fed will start easing in June.
After Wall Street hit record highs this month thanks to artificial intelligence, all three indices expect big quarterly gains. Gains also came from optimism about the Fed reducing rates later in the year.
At 05:20 a.m. ET, Dow e-minis lost 5 points, or 0.01%, S&P 500 e-minis down 5.75 points, or 0.11%, and Nasdaq 100 was down 35.25 points, or 0.19%. Nvidia (NVDA.O) fell 0.9% before the bell, along with most megacap growth companies. The AI giant's shares have declined almost 2% in the last two days.
After announcing a $460 million acquisition of Gearbox Entertainment, best known for Borderlands, from Sweden's Embracer (EMBRACb.ST), Take-Two Interactive Software (TTWO.O) slumped 1.3%. Cryptocurrency and blockchain firms rose as bitcoin and ethereum prices recovered after two days of decline. Exchange operator Coinbase Global (COIN.O), software company MicroStrategy (MSTR.O), and crypto miner Riot Platforms (RIOT.O) climbed 2.2%–3.3%.
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