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Stock Market News: Dow Set to Open Up
S&P 500 and Nasdaq Composite futures also turned higher after the June CPI report.
Last Updated:
July 11, 2024 at 8:53 AM EDT
Updated 54 min ago
Stock Futures Falling With Market Focus on CPI Inflation Report
(Dreamstime)
U.S. stock futures were retreating early Thursday after notching another day of record closes.
Futures for the Dow Jones Industrial Average lost 76 points, or 0.2%. S&P 500 futures fell 0.1%, as did contracts tracking the technology-heavy Nasdaq Composite. The Dow fell Wednesday but the Nasdaq jumped 1.2% and the S&P exceeded 5,600 points for the first time.
It’s still the optimism about earnings gains from artificial intelligence and hopes of interest-rate cuts from the Federal Reserve that are driving stocks higher.
Inflation data will be a key catalyst for stocks on Thursday when the latest Consumer Price Index report is released–a lower reading is probably good for stocks, because it gives the Fed more scope to lower borrowing costs, while a stronger reading could mean prices fall back.
“We continue to expect lower inflation ahead,” said Julien Lafargue, a strategist at Barclays Private Bank. “With increasing signs that the U.S. economy is slowing down, we believe that the Fed could be in a position to lower interest rates in September.”
Bond yields were little changed. The yield on the benchmark 10-year U.S. Treasury bond was at 4.29%. The yield on the 2-year note was at 4.639%.