Futures hold steady ahead of inflation data By Reuters


© Reuters. FILE PHOTO: Morning sunlight falls on the facade of the New York Stock Exchange (NYSE) building after the start of Thursday’s trading session in Manhattan in New York City, New York, U.S., January 28, 2021. REUTERS/Mike Segar/File Photo

By Ambar Warrick

(Reuters) – U.S. stock index futures traded in a tight range on Thursday as investors waited for inflation data for signs the Federal Reserve could start tightening monetary policy faster than expected.

The Labor Department’s report, due at 8:30 a.m. ET, will likely show that the consumer price index increased 0.4% last month after surging 0.8% in April, the largest gain since June 2009, as speedy vaccinations helped re-open the economy.

While the Fed has reiterated that the spike in inflation would be transitory, investors fear that a bigger-than-expected surge could push the central bank into tightening policy earlier than signaled.

The Fed’s monetary policy meeting next week will be closely watched for any signals. The labor market and inflation are two key factors for the Fed to consider tightening, and while inflation has risen, recent payrolls data was underwhelming.

Investors were also watching for weekly jobless claims data, due at 8:30 a.m. ET.

U.S. E-minis were up 3 points, or 0.07% at 06:36 a.m. ET. Dow E-minis were up 81 points, or 0.24%, while E-minis were down 35.75 points, or 0.26%.

A rally in so-called “meme” stocks looked set to continue, with shares of Clover Health – a recent target of retail buyers – rising 4.5% in premarket trade.

GameStop Corp (NYSE:), the stock most closely associated with the retail buying frenzy this year, fell 6.0% after it named the head of Amazon (NASDAQ:)’s Australian business as its CEO and reported quarterly results that were stronger than expectated.

Boeing (NYSE:) rose 1.1% after sources told Reuters United Airlines was in talks to place a multi-billion-dollar order for single-aisle jets potentially split between Boeing and Europe’s Airbus.

Focus was also on a major infrastructure spending bill, talks over which hit a deadlock in the Senate.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.