Nasdaq Index, Dow Jones, S&P 500 News: Futures Dip as Inflation Fears Mount

Stock Futures Reflect Inflation Concerns

Stock futures have taken a dip as the market braces for new inflation reports, with a specific focus on the upcoming producer price index (PPI). Meanwhile, U.S. Treasury yields exhibit slight changes, reflecting ongoing investor concerns.

At 11:30 GMT, Dow Futures are trading 38631.00, down 126.00 or -0.33%. S&P 500 Index futures are at 5190.00, down 17.75 or -0.34% and Nasdaq-100 Index futures are trading 18145.75, down 51.00 or -0.28%.

Wall Street’s Recent Performance

Yesterday saw a downturn in Wall Street indices like the Dow Jones, S&P 500, and Nasdaq Composite. This slump was largely driven by worries over the higher-than-expected March consumer price index (CPI) and its implications for Federal Reserve rate policies.

Rising Treasury Yields

Treasury yields have shown a notable uptick, particularly in the 10-year and 2-year Treasurys. This rise in yields underscores growing market apprehension about persistent inflationary pressures.

Inflation Data and Rate Cut Expectations

March’s CPI indicated a higher rate of inflation than forecasted, challenging previous expectations of Federal Reserve rate cuts. Market sentiment has shifted, with a significantly reduced probability of a rate cut happening in June.

Anticipated Reports

Attention now turns to the PPI, which tracks wholesale level prices, expected to show a modest increase in March. Alongside this, investors are awaiting the release of weekly initial jobless claims figures, which could offer further insights into labor market conditions.

Market Outlook and Earnings Season

Despite these challenges, there remains a degree of optimism regarding the labor market’s balance and long-term inflation control. In the earnings arena, reports from CarMax, Fastenal, and Constellation Brands are due today, followed by major banks on Friday.

Short-term Market Forecast

The market currently presents a bearish outlook in the short term, as inflation concerns and fluctuating interest rates keep investors wary. The focus remains on upcoming earnings and inflation data, which will be crucial in determining the market’s next movements.

Technical Analysis

E-mini S&P 500 Index futures are drifting lower during the pre-market session while hovering just above the intermediate trend indicator that has been guiding the market higher since early November.

The key indicator to watch on Thursday is the 50-day moving average at 5172.97. Trader reaction to this trend indicator will determine the tone of the market today.

While some will read a test of this level as a buying opportunity, others will see it as a potential trigger point for an acceleration to the downside.

Last week, the benchmark index crossed to the weakside of a long-term rising wedge, putting further pressure on the market.