US stock futures are on the rise today as investors eagerly await the latest inflation and labor data that will help determine if a quarter-point interest-rate cut will happen next week. The S&P 500 and Nasdaq 100 futures are up about 0.2%, following a strong tech rally that boosted the markets. Dow Jones Industrial Average futures are also up roughly 0.2%.
After a turbulent Wednesday, where tech growth helped lift stocks from a slide driven by fading hopes of a larger rate cut by the Federal Reserve, the market is now adjusting to new information. Despite a slightly higher-than-expected “core” consumer inflation reading, the Fed is still expected to proceed with a 25 basis point rate cut in their decision on September 18. Traders are now pricing in an 85% chance of this cut, compared to just 50% a few days ago.
Investors are now turning their attention to Thursday’s updates on wholesale inflation and unemployment numbers to confirm their rate cut predictions. The producer price index for August is anticipated to show an increase from July, while weekly jobless claims are expected to decrease slightly.
In addition to economic indicators, tech enthusiasts are buzzing about OpenAI’s potential fundraising round that could value the company at $150 billion, more than double its earlier valuation of $86 billion earlier this year.
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