Markets show minimal movement ahead of key data, with Fed rate hike odds dropping after softer inflation figures.
US stock futures held steady early Friday, with Dow Jones futures near 53,910 and S&P 500 futures around 7,820. Nasdaq 100 futures edged down 0.09% to 30,160. Investors remained cautious before July Retail Sales data due later today.
Expectations for Federal Reserve policy shifted after July’s producer prices came in flat, below the 0.2% growth forecast. Core PPI rose 0.2%, missing the 0.3% consensus. Annual headline PPI increased 4.7%, while core PPI climbed 4.2%. The CME FedWatch Tool now shows a 32.4% chance of a September rate hike, down from 40.6% post-inflation data.
Major indexes advanced in Thursday’s session, with the S&P 500 gaining 0.65% and hitting record highs. The subdued inflation outlook supported market sentiment ahead of the retail sales release.