US stock futures edged lower Thursday after three straight days of gains, as markets digested a temporary truce in U.S.-China tariff tensions and eyed fresh economic data for clues on inflation and growth. All eyes now turn to US Federal Reserve Chair Jerome H. Powell, who is set to speak at the Thomas Laubach Research Conference in Washington, D.C., on May 15. Powell faces mounting pressure from President Trump, who has been openly urging the Fed to begin cutting interest rates.
Futures linked to the S&P 500 were down 0.5 percent, while Nasdaq-100 futures slipped 0.7 percent. Dow Jones Industrial Average futures also declined, falling 128 points, or 0.3 percent.
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The cautious mood followed news that Washington and Beijing have paused their tit-for-tat tariff war, easing some pressure on equities. Confidence in the near-term market outlook got a further lift earlier this week from promising US inflation data and signs of resilient tech momentum.
Among individual names, Foot Locker shares skyrocketed over 68 percent after a Wall Street Journal report suggested Dick’s Sporting Goods is nearing a $2.3 billion acquisition deal for the footwear retailer. Meanwhile, UnitedHealth dropped 6 percent following reports of a Justice Department probe—although the company said it has not been notified of any such investigation.
Tech giants continued to lead the rally this week. Nvidia and Tesla have jumped more than 16 percent, while Meta Platforms has surged 11.3 percent. Amazon and Alphabet also notched gains of more than 8 percent. The Nasdaq Composite is up 6.8 percent so far this week, outpacing the S&P 500’s 4.1 percent gain and the Dow’s 1.9 percent rise.
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Helping fuel the positive sentiment was April’s Consumer Price Index (CPI), which showed inflation rising 0.2 percent for the month—right in line with expectations. On a year-over-year basis, headline inflation slowed to 2.3 percent, just below the anticipated 2.4 percent, reinforcing hopes of easing price pressures.
Attention now shifts to Thursday’s release of the Producer Price Index (PPI)—a measure of wholesale inflation. Economists expect the headline PPI to rise 0.3 percent month-on-month in April, with the core figure, which excludes food and energy, also forecast to increase 0.3 percent.
Investors will also parse through retail sales, industrial production, and weekly jobless claims data, all scheduled for release before the market opens. Meanwhile, Walmart will report quarterly earnings, offering further insight into the health of the American consumer.
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