U.S. stock index futures rose slightly on Wednesday evening as investors processed a stronger-than-expected consumer inflation report, which reduced the likelihood of imminent interest rate cuts. While Wall Street closed mostly lower after the inflation data was released, robust corporate earnings helped mitigate the overall losses. However, concerns over trade tariffs from former President Donald Trump’s administration kept markets within a narrow range.
By 6:35 PM ET (23:35 GMT), S&P 500 futures rose by 0.1%, reaching 6,078.50, while Nasdaq 100 futures gained 0.2%, settling at 21,855.0. Dow Jones futures also saw a modest increase of 0.1%, standing at 44,507.0.
January’s Consumer Price Index (CPI) data came in higher than expected, reinforcing expectations that the Federal Reserve will maintain interest rates in the near term. Speaking before Congress, Fed Chair Jerome Powell reiterated that rate cuts would not occur until inflation shows clear movement toward the 2% target. The Federal Reserve had already implemented a 1% rate cut in 2024 but remains cautious due to a strong labor market and resilient economic conditions.
In the political sphere, Trump has pledged to tackle inflation, blaming the Biden administration. However, analysts have cautioned that his recent imposition of 25% tariffs on steel and aluminum imports, along with the potential for reciprocal tariffs, could drive inflation even higher in the coming months.
Despite market weakness, Wall Street closed lower on Wednesday. The S&P 500 dropped 0.3%, finishing at 6,051.92, the Dow declined by 0.5% to 44,368.68, and the Nasdaq Composite remained flat at 19,649.95. Earnings reports from companies such as CVS Health and Gilead Sciences provided some support to the market, with CVS shares soaring by 15% and Gilead gaining 7.5%. Other companies, including Robinhood, MGM Resorts, Applovin, and Dutch Bros, also posted strong post-earnings performances.
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