Wall Street futures displayed caution at record highs ahead of the market opening, as traders reassessed values with broad-market equity indices once again at all-time peaks. Following the recent national inflation report, the CME FedWatch tool indicated a notable likelihood that the Federal Reserve will reduce interest rates by 0.25% at the upcoming policy meeting, with a staggering 98.6% probability. In economic updates, the producer price index (PPI) bulletin is set to be released in Washington at 8:30 am ET.
Analysts forecast a year-over-year increase of 2.6% for this measure, alongside a projected rise of 3.2% in the PPI-core, which excludes certain food and energy costs. Futures markets positioned the S&P 500, the Nasdaq, and the Dow Jones slightly down, off about 0.2% from their previous Wednesday closes.
In a notable shift, Adobe reported solid fiscal Q4 earnings but tempered guidance, resulting in a pre-bell decline of 10.6% in its stock price. Asian exchanges experienced a generally positive trading session overnight, buoyed by expectations of central bank moderation in both Tokyo and Washington.
In contrast, European markets edged lower by midday. Looking ahead, Ciena intends to announce its earnings before the market opens, joined by reports from other significant players such as Broadcom and Costco, which are slated to be released post-bell. Additionally, the economic calendar is filled with crucial releases aside from the PPI bulletin, including the weekly jobless claims report due at 8:30 am ET, followed by the Q3 services survey at 10 am.
The weekly EIA natural gas data is also expected, scheduled for release at 10:30 am. In pre-market trading, Bitcoin was priced at $100,633, while West Texas Intermediate crude oil held steady at $70.25. The 10-year US Treasuries offered a yield of 4.30%, and spot gold was traded at $2,712 per ounce..