Stock futures were little changed on Thursday as investors waited for a key inflation report to gauge the outlook for the Federal Reserve’s rate-hiking campaign.
Futures linked to the Dow Jones Industrial Average gained 53 points, or 0.2%. S&P 500 futures were up 0.2%, while Nasdaq 100 futures were up 0.1%.
All eyes are on December’s CPI, with the consensus forecast calling for a modest easing in price pressures.
Economists expect the consumer price index to fall 0.1% in December but rise 6.5% year-on-year, compared with a monthly gain of 0.1% in November and annual growth of 7.1%, according to the Dow Jones . The CPI is well below the June peak of 9.1%.
Excluding food and energy prices, economists expect December CPI to be 0.3% higher than the previous month and 5.7% higher than a year ago.
“Inflation should continue to fall, leading to an end to the Fed’s rate hikes this spring, keeping interest rates under control and boosting corporate earnings,” said Jeff Buchbinder, chief equity strategist at LPL Financial, in a statement.
Stocks rallied ahead of Wednesday’s inflation report as investors bet the Fed could slow rate hikes amid more dovish prices. The Dow climbed more than 260 points while the S&P 500 gained 1.3% with all 11 sectors ending the day higher. The tech-heavy Nasdaq Composite gained 1.8% on Wednesday, posting a four-day streak.
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