Dow Set to Open Down as Market Digests Inflation Data
Stock futures were mainly falling on Thursday, as investors focused on stubborn U.S. inflation rather than the start of peace talks to end Russia’s war with Ukraine.
President Donald Trump said in a post on Truth Social Wednesday that he and his Russian counterpart Vladimir Putin had a “lengthy and highly productive phone call” in which they agreed to open talks to end the conflict, which has been raging for nearly three years.
Peace in Europe would likely ease pressure on energy supply chains and oil prices. The market could do with some good news on that front, given that Wednesday’s higher-than-expected January consumer price index report has fueled fears that the Federal Reserve won’t be able to cut interest rates at all in 2025 with inflation still running above its 2% target.
Producer price data due Thursday are set to give the market another update about how the central bank’s battle against inflation is going.
Stocks had tumbled after the CPI report was published and looked set to slide again Thursday. Futures tracking the Dow Jones Industrial Average were down 23 points, or 0.1%. S&P 500 futures also fell 0.1%, while Nasdaq 100 futures rose 0.1%.
Oil prices were also falling after Trump said he and Putin would start peace talks. The Brent international benchmark slipped 0.7% to $74.64 a barrel, and West Texas Intermediate U.S. crude was down 0.7% to $70.85 a barrel.
Yields on benchmark 10-year U.S. Treasury notes were down 3 basis points to 4.604%, and the WSJ Dollar Index, which tracks the greenback against 16 other currencies, fell 0.2%.