Futures tepid ahead of economic data
(Reuters) — U.S. stock index futures were subdued on Thursday with a slew of economic data reports on the radar, while investors looked ahead to commentary from central bank officials on the timing of the Federal Reserve's first interest-rate cut.
Wall Street made a comeback on Wednesday after an inflation-induced malaise, driven by gains in megacaps. Nvidia (NASDAQ:NVDA) dethroned Google-parent Alphabet (NASDAQ:GOOGL) to become the country's third most valuable firm days after it overtook Amazon.com (NASDAQ:AMZN), as the excitement around artificial intelligence (AI) grows.
Earlier in the week, signs of sticky inflation added to uncertainty about the timeline of rate cuts this year. However, investors found a modicum of relief after policymakers said price pressures were still moderating, although the path to the 2% target could be bumpy.
Data due at 8:30 a.m. ET, including January retail sales, industrial production and weekly jobless claims, are expected to shed more light on the economy's health.
Comments from Governor Christopher Waller and Atlanta Fed President Raphael Bostic due through the day will also be scrutinized for their perspectives on the monetary policy easing outlook.
Bets for at least a 25-basis-point rate cut in May have settled at 40%, down from over 60% earlier in the week, while odds for June stand at 82.3%, according to the CME Group's (NASDAQ:CME) FedWatch Tool.
«The January CPI report injected another dose of reality into investors, indicating the likelihood that the Fed will be 'slower to lower' short-term interest rates,» said Sam Stovall, chief investment strategist at CFRA Research in New York.
«We think the FOMC (Federal Open Market Committee) will wait to see a broad-based slowing in
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