US stock futures edge lower as rate outlook remains uncertain
Investing.com-- US stock futures fell marginally Friday, handing back some of the previous session's gains, as investors digested recent inflation data as well as quarterly corporate earnings.
By 06:35 ET (11:35 GMT), the Dow Jones Futures contract was down 50 points, or 0.1%, S&P 500 Futures traded 6 points, or 0.1%, lower, while Nasdaq 100 Futures traded largely unchanged.
Wall Street indexes rose on Thursday, with the S&P 500 rising 0.5% to a record closing high, while the NASDAQ Composite surged 0.9%, also to a record close. The Dow Jones Industrial Average lagged, rising only 0.1%.
The major averages recorded another positive month, with the Nasdaq the best performer in February, registering a 6.1% gain. The S&P 500 climbed 5.2%, while the DJIA added 2.2% for its first four-month winning streak since May 2021.
PCE price index data — the Federal Reserve’s preferred inflation gauge — eased slightly in January, as expected. The print spurred some bets that the Fed will begin cutting rates by June, which in turn sparked a rally on Wall Street.
But given that inflation remained well above the Fed’s 2% annual target, doubts remained over the timing of the central bank’s potential cuts. A slew of Fed officials reiterated their warnings over inflation remaining sticky, while the CME Fedwatch tool only showed a mild increase in bets on a June rate cut.
Additionally, doubts remain over the extent of the global recovery, after official data showed that China's manufacturing activity in February shrank for a fifth straight month, raising pressure on Beijing to roll out more stimulus measures as the parliament prepares for a key annual meeting next week.
China's official manufacturing purchasing managers' index, fell to 49.1 in
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