US stock futures flat as investors weigh Trump tariff plan, sticky inflation
Investing.com-- U.S. stock index futures moved in a flat-to-low range on Thursday evening as investors grappled with a swathe of sticky inflation readings this week, although a delay in more U.S. trade tariffs offered some relief.
Futures steadied after a positive session on Wall Street, where a rally in heavyweight technology stocks and relief over U.S. President Donald Trump not immediately imposing reciprocal tariffs against U.S. trading partners sparked strong gains.
Risk appetite was also boosted by Trump stating that his administration was preparing for peace talks between Russia and Ukraine.
But a series of hotter-than-expected inflation readings still tempered overall optimism, as did Trump stating that he was still preparing to impose reciprocal tariffs in the coming weeks.
S&P 500 Futures steadied at 6,134.50 points, while Nasdaq 100 Futures fell 0.1% to 22,086.0 points by 18:17 ET (23:17 GMT). Dow Jones Futures were flat at 44,827.0 points.
Trump outlines roadmap for reciprocal tariffs
Trump on Thursday signed an executive order outlining plans to impose trade tariffs that would match or surpass those imposed by major trading partners on U.S. imports.
But Trump did not immediately impose any reciprocal tariffs, as he had previously threatened. This offered Wall Street some relief.
Still, the president had earlier this week imposed 25% duties on steel and aluminum imports. Trump also signaled that higher reciprocal tariffs will be imposed in the coming weeks, although he did not outline a clear timeline.
Wall St supported by lower yields after PPI data
Wall Street indexes took some support from a drop in Treasury yields, even as producer price index inflation data for January read higher than expected.
But the PPI data showed some softness in components of inflation that factor into PCE price index data- the Federal Reserve’s preferred inflation reading. This could herald a slightly softer PCE print for January.
Easing PCE inflation could give the central bank more headroom to cut interest rates further, although Fed Chair Jerome Powell warned this week that the central bank was likely to remain cautious about further easing.
Consumer price index inflation data also read stronger than expected for January.
Still, heavyweight technology stocks surged on Thursday, tracking a fall in yields. Nvidia (NASDAQ: NVDA ) and Apple (NASDAQ: AAPL ) surged 3.2% and 2%, respectively, while Tesla (NASDAQ: TSLA ) jumped nearly 6% from a 2-½ month low.
The S&P 500 rose 1% to 6,115.07 points, coming back in sight of a record high. The NASDAQ Composite rose 1.5% to 19,945.64 points, while the Dow Jones Industrial Average rose 0.8% to 44,711.49 points.