Stock futures were flat Thursday morning as Wall Street digested fresh inflation data. Futures tied to the Dow Jones Industrial Average slipped just 22 points, or 0.1%. S&P 500 futures were marginally higher, while Nasdaq-100 futures rose 0.2%. The producer price index reading for March came in below estimates, providing some relief after Wednesday’s selloff on a faster-than-expected rise in prices for consumer goods and services. Wholesale prices rose 0.2% in March, while economists polled by Dow Jones expected 0.3% growth. Core CPI, which excludes food and energy, increased 0.2%, in-line with forecasts. Stocks sold off Wednesday as investors assessed a hot March consumer price index reading that fueled worries the Federal Reserve may implement fewer rate cuts than expected. Minutes from the Fed’s meeting last month also showed that some officials remain concerned about inflation’s path toward the central bank’s 2% goal. The surprising print — in which consumer prices grew 0.4% in March and 3.5% from a year earlier — prompted Goldman Sachs chief economist Jan Hatzius to adjust the firm’s call to two rate cuts from three in 2024. He now sees the first rate reduction happening in July. “I am optimistic that we are rebalancing the labor market, and we will bring down inflation over time – for me none of those things have changed,” he told CNBC’s “Closing Bell” on Wednesday. “However, what has changed is the timing of the Fed adjusting because that’s going to depend a lot more on the month-on-month inflation news, which has clearly been disappointing.” The Dow Jones Industrial Average lost 1.1%, while the S&P 500 dropped 0.95%. The Nasdaq Composite sank 0.84%. The early stages of earnings season continue Thursday, with CarMax shares falling more than 7% after disappointing on both top and bottom lines. The unofficial start to the period commences with big bank earnings from JPMorgan, Wells Fargo and Citigroup on Friday. U.S. Treasury yields fell Thursday after March wholesale inflation data came in less than expected. The yield on the 10-year Treasury was down by more than 2 basis points to 4.533%. The 2-year Treasury yield was last at 4.927% after falling by more than 4 basis points. Asia-Pacific markets largely fell after U.S. inflation for March came in hotter than expected, stoking worries that the Federal Reserve could keep interest rates higher for longer. Hong Kong’s Hang Seng index pared some losses, and was last down 0.25%, while the CSI 300 index in mainland China ended marginally lower at 3,504.24. South Korean markets resumed trade after a public holiday, with the Kospi reversing earlier losses to close nearly flat at 2,706.96. The small-cap Kosdaq shed 0.14% to finish at 858.1. South Korea’s liberal opposition parties scored a landslide victory in a parliamentary election held on Wednesday, likely handicapping incumbent president Yoon Suk Yeol and his conservative party’s efforts to push through their legislative agenda. Japan’s Nikkei 225 fell 0.35% to 39,442.63, but the broad-based Topix reversed losses and gained 0.15%, closing at 2,746,96. In Australia, the S&P/ASX 200 slipped 0.44% to 7,813.6, snapping a three-day winning streak. Oil prices held steady in early Asian trading on Thursday after gaining a dollar a barrel in the prior session as investors braced for a worsening of the Middle East crisis, potentially involving Iran, the third-largest oil producer in OPEC. Brent crude futures advanced by 4 cents to $90.52 a barrel by 0047 GMT, while U.S. West Texas Intermediate crude futures were up 2 cents at $86.24 a barrel. Gold prices held steady on Thursday amid geopolitical and economic uncertainties with potential gains being tempered by hot U.S. inflation data, dampening expectations of the U.S. Federal Reserve starting the rate-cutting cycle in June. Spot gold was little changed at $2,337.98 per ounce. U.S. gold futures were flat at $2,355.6.
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