U.S. stock futures slid Thursday after the tech-heavy Nasdaq Composite finished above the 20,000 level for the first time. Futures tied to the Nasdaq 100 slipped 0.3%. S&P 500 futures were down about 0.2%. Dow Jones Industrial Average futures fell 44 points, or about 0.1%. Software giant Adobe declined more than 11% in the premarket following the company’s weaker-than-expected revenue guidance for the current quarter. During Wednesday’s session, the Nasdaq gained around 1.8%, topping the 20,000 threshold and posting an all-time high and a closing record. The broad market S&P 500 added 0.8%. Meanwhile, the 30-stock Dow underperformed, falling around 99 points, or 0.2%. Equities are “rebounding from a poor start to the week,” said Mark Hackett, chief of investment research at Nationwide.
To be sure, “expectations are elevated, and valuations are at the highest level since the technology bubble,” Hackett added. “While seasonality and technical tailwinds are supportive through year end, investors are likely to be more discerning and selective next year as risk and reward are scrutinized.” November’s consumer price index report also came in line with economists’ estimates, leading investors to anticipate another rate cut from the Federal Reserve at its policy meeting next week. The CPI reading, which tracks prices across a basket of goods and services, rose 0.3% month over month and grew at a 12-month rate of 2.7%. Fed funds futures trading data reflects a nearly 99% likelihood that central bank policymakers will lower rates next week, according to the CME FedWatch tool. Additional inflation data awaits on Thursday morning, with the release of the producer price index report for November. Economists polled by Dow Jones see a 0.2% increase on a monthly basis. Weekly jobless claims are also due. On the earnings front, chip giant Broadcom, home furnishings company RH and retailer Costco Wholesale are due to post results after the close. U.S. Treasury yields held steady on Thursday as investors digested the latest inflation reading and awaited further data. At 6:03 a.m. ET, the 10-year Treasury yield was up by more than 3 basis points at 4.304%. Meanwhile, the 2-year Treasury rose more than 2 basis points to 4.18%. Asia-Pacific markets mostly rose Wednesday, following gains on Wall Street that saw the Nasdaq Composite surge to record highs after November’s inflation report met expectations. Australia’s S&P/ASX 200 fell 0.28% to close at 8,330.3. Japan’s Nikkei 225 gained 1.21% to close at 39,849.14, while the Topix climbed 0.86% to 2,773.03. South Korea’s Kospi index gained 1.62% to 2,482.12, while the small-cap Kosdaq rose 1.1% to 683.35 as investors shrugged off political turmoil in the country. China’s CSI 300 rose 0.99% to close at 4,028.5. Hong Kong’s Hang Seng index was up 1.28% at 020,415 as of its final hour of trade ahead of the city’s third quarter industrial production data, which will be released later in the day. Oil prices were little changed on Thursday as a forecast for ample supply in the oil market offset optimism stemming from rising expectations of a U.S. interest rate cut. Brent crude futures were down 5 cents at $73.47 a barrel at 7:10 a.m. ET. U.S. West Texas Intermediate crude futures rose 4 cents to $70.33. Both benchmarks rose by more than $1 on Wednesday. The International Energy Agency said it expected the oil market to be comfortably supplied next year, even as it revised its demand outlook for next year up slightly. OPEC cut its demand growth forecast for 2024 for the fifth straight month on Wednesday and by the largest amount yet. Gold slipped on Thursday as investors booked profits after prices hit more than one-month high earlier in the day on increased expectations of an interest rate cut by the Federal Reserve next week. Spot gold shed 0.5% to $2,704.41 per ounce, as of 0257 GMT. It hit the highest since Nov. 6 earlier in the session. U.S. gold futures fell 0.5% to $2,744.60. “It’s just profit booking because we’ve seen a good rally in gold due to various factors this week, including geopolitical tensions, China resuming gold purchases and the inflation number yesterday being in line with expectation,” said Ajay Kedia, director at Kedia Commodities, Mumbai. “Overall, I think the current scenario remains supportive for gold.”