US stock futures saw modest gains on Wednesday, despite a recent inflation report for January that raised concerns about the Federal Reserve’s interest rate policy.
Dow Jones futures (YM=F) edged up by 0.1%, while Nasdaq futures (NQ=F) rose 0.2%. Similarly, futures for the S&P 500 (ES=F) also saw a small increase of 0.2%.
January’s Inflation Report Sparks Concerns About Interest Rate Cuts
The report revealed that consumer prices in January rose more than expected, with inflation hovering around 3%. This has all but ruled out the possibility of an interest rate cut by the Federal Reserve in the near future. Instead, analysts believe the central bank will likely maintain its current rate until inflation approaches its target of 2%.
Earnings Reports Show Mixed Results for Major Stocks
In after-hours trading, Reddit (RDDT) saw a drop in stock prices following a disappointing earnings report, which showed weaker-than-expected user growth. On the other hand, Robinhood (HOOD) surged after reporting a better-than-expected profit for the fourth quarter.
What’s Next? Key Inflation Data and Corporate Earnings
Thursday will bring another key inflation reading, as Wall Street prepares for the release of the Producer Price Index (PPI) at 8:30 a.m. ET. The PPI, which tracks price changes at the wholesale level, is expected to rise by 0.3%.
Investors are also looking forward to earnings reports from major companies like AirBnB (ABNB), Roku (ROKU), and Coinbase (COIN).
Trade War Concerns Still Loom Over the Market
In addition to inflation data, President Donald Trump’s ongoing trade war continues to be a concern. Although he has not yet finalized when he will announce reciprocal tariffs, Trump has indicated that duties could be imposed by the end of the week, which adds uncertainty to market conditions.
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