U.S. Stock Index Futures Steady

(Reuters) – U.S. stock index futures remained stable on Thursday as investors anticipated new economic data and comments from Federal Reserve Chair Jerome Powell.

Important Data Release

The producer price index (PPI) for October and weekly jobless claims data are set to release at 8:30 a.m. ET. Paul Donovan, chief economist at UBS Global Wealth Management, noted that the PPI figures better reflect corporate pricing power than consumer data, suggesting a consistent tone with a possible December rate cut.

Market Expectations

Traders have assigned an 82.3% chance for a 25-basis point interest rate cut at the Fed's December meeting, according to CME FedWatch. This probability increased following Wednesday's consumer price index data, which met forecasts.

Powell's Upcoming Address

Powell will update business leaders in Dallas regarding his economic outlook, particularly after Fed policymakers recently refocused on inflation risks and the timings and extent of interest rate cuts.

Political Context

Policies under President-elect Donald Trump are anticipated to contribute to inflationary pressures. Edison Research indicated that the Republican Party will control both congressional houses when Trump assumes office, facilitating an agenda centered on tax reductions and government downsizing.

Bond Market Effects

Inflation expectations are evident in the bond market, with the U.S. 10-year Treasury yield reaching its highest since July, potentially restricting gains for rate-sensitive equities.

Market Movements

At 5:25 a.m. ET, Dow E-minis rose 47 points (0.11%), S&P 500 E-minis gained 3.75 points (0.06%), and Nasdaq 100 E-minis increased by 8 points (0.04%). Futures for the small-cap Russell 2000 jumped 0.7% after it had decreased nearly 1% on Wednesday.

Cryptocurrency Focus

Cryptocurrency-related stocks saw gains as bitcoin advanced, buoyed by optimism surrounding Trump's policies. Coinbase Global rose 4.2%, while miner MARA Holdings and bitcoin investor MicroStrategy grew by 3.3% and 3.7% respectively in premarket trading.

Previous Day Performance

On Wednesday, the Dow and S&P 500 experienced slight increases, whereas the Nasdaq faced losses. Earnings reports from Walt Disney and semiconductor company Applied Materials are expected before the market opens, with their shares up by 2% and 1.2% respectively on Thursday. In contrast, Cisco dipped 4.6% after predicting annual revenue inline with estimates.

Upcoming Remarks

Remarks from Fed officials Adriana Kugler, Thomas Barkin, and John Williams are scheduled for later on Thursday.