Dow futures were little changed Thursday after Wall Street’s strong run earlier in the week. Futures on the Dow ticked up 0.02%, while the S&P 500 and Nasdaq edged slightly lower.
Investors are waiting for fresh clues on inflation and the labor market from July’s producer price index and the latest jobless claims.
Optimism is still running high on hopes that the Federal Reserve will move to cut interest rates in September.
Strong earnings and steady economic data have kept equities on firm ground, with the Dow nearing record territory. Earnings from Cisco, Deere, and Tapestry are due today, keeping traders’ attention on the corporate front.
5 things to know before Wall Street opens
1. All eyes are on two pieces of economic data out today: July’s producer price index and the latest weekly jobless claims.
The inflation reading will give markets a clearer sense of where the Fed might head next on interest rates, while the jobless claims will reveal whether the labor market’s strength is holding up or starting to slip.
The numbers could set the mood for trading across sectors as the day unfolds.
2. The market’s gaze is still fixed on the Fed, with September shaping up to be a pivotal meeting.
Softer inflation numbers and big downward revisions to payrolls in May through July have left traders almost certain that a rate cut is coming, 25 basis points at the very least.
Treasury Secretary Scott Bessent has even floated the idea of a half-point trim to make up for what he sees as missed chances earlier this summer.
That possibility is keeping optimism alive, though there’s still debate over how aggressive the Fed will be. Whatever they decide, it will ripple through borrowing costs, corporate earnings, and the broader economy.
3. Cisco, Deere, and Tapestry report earnings today, giving Wall Street fresh clues on how big names are handling a tricky economic backdrop. Cisco’s latest numbers beat forecasts, helped by strong demand for AI gear.
The rest of today’s results will show whether companies are managing to push through inflation and supply problems or starting to feel the strain.
Strong reports could keep stocks moving higher, but a weak outlook from any of these names could sour the mood fast.
4. Asian markets ended the session on a mixed note after China announced new steps to shore up its troubled property sector and encourage consumer spending.
In Europe, stocks opened stronger, supported by upbeat corporate earnings and easing inflation in the eurozone.
Oil prices edged higher amid worries over supply disruptions in the Middle East, while gold held steady as investors awaited the latest US inflation numbers.
A slightly weaker dollar is also in focus, with potential knock-on effects for global trade and US companies sensitive to currency shifts.
5. The mood on Wall Street is cautiously upbeat. The Dow is closing in on record highs, helped by solid earnings and a steady economy.
Still, there’s debate over how soon and how much, the Fed will cut rates. Inflation is proving sticky, and global risks are still in play, so traders aren’t getting ahead of themselves.
With fresh economic reports and corporate updates due today, the market’s tone could shift quickly once the numbers hit.
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