U.S. stock futures indicate a mostly flat open on Thursday, signaling a quiet start after the modest rally seen over the past two sessions. Investors are treading carefully as they weigh corporate earnings and upcoming economic indicators.
Shares of Nvidia (NASDAQ:NVDA) fell 0.3% in pre-market trading. While the AI chipmaker exceeded second-quarter expectations overall, weaker-than-anticipated data center sales tempered investor enthusiasm.
All eyes are now on Friday’s Commerce Department report covering July personal income and spending, which will include the Federal Reserve’s preferred measure of core inflation. Analysts forecast a slight increase in the annual core inflation rate to 2.9% from June’s 2.8%, potentially shaping interest rate expectations.
According to CME Group’s FedWatch tool, the market sees an 85.3% chance the Fed will cut rates by 25 basis points at its September meeting.
After a volatile session on Tuesday, equities saw moderate gains on Wednesday. The S&P 500 hit a record closing high, while the Dow Jones Industrial Average rose 147.16 points, or 0.3%, to 45,565.23. The Nasdaq gained 45.87 points, or 0.2%, to 21,590.14, and the S&P 500 advanced 15.46 points, or 0.2%, to 6,481.40.
Despite Nvidia’s earnings release, traders largely stayed on the sidelines, awaiting additional economic data.
Energy stocks led gains as crude prices surged. The Philadelphia Oil Service Index climbed 2.1%, and the NYSE Arca Oil Index rose 1.7%. Computer hardware names also performed well, with the NYSE Arca Computer Hardware Index up 1.3%.
Software and telecom sectors posted modest advances, while brokerage stocks declined, reflecting investor caution as the market awaits Friday’s critical inflation report.
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