Futures edge higher ahead of revised 2023 inflation data
(Reuters) — U.S. stock index futures edged higher on Friday, a day after the benchmark S&P 500 breached the 5,000-mark for the first time, while investors looked ahead to inflation data for hints on the timing of the Federal Reserve's first interest-rate cut.
The S&P 500 and the blue-chip Dow both hit all-time highs on Thursday, while the tech-heavy Nasdaq closed less than 2% away from its peak as investors cheered strong earnings, particularly from companies poised to benefit from the boom in artificial intelligence.
Investors will now focus on the U.S. Bureau of Labor Statistics' revised inflation figures for 2023, calculated using new seasonal adjustment factors — statistical weights that aim to reflect how prices behaved over the year more accurately.
The updated Consumer Price Index data will be released at around 8:30 a.m. (1330 GMT), with new inflation data for January coming next week.
«This is something the Fed are watching, and Governor Waller explicitly mentioned these revisions in his speech last month, so it'll be an important one for the timing of any rate cuts,» said Deutsche Bank strategist Jim Reid.
«I don't think there's any analytical reason to believe the bias will continue to favor higher H2 inflation over H1, but the market is a bit nervous after last year that the same seasonal adjustment pattern could repeat.»
Strong economic data and hawkish comments from Federal Reserve policymakers in recent weeks have pushed back traders' bets that the U.S. central bank will start cutting rates in March.
At 5:43 a.m. ET, Dow e-minis were up 9 points, or 0.02%, S&P 500 e-minis were up 5.75 points, or 0.11%, and Nasdaq 100 e-minis were up 52.25 points, or 0.29%.
The three main indexes were set for their fifth
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