After a period of soaring highs, U.S. stock index futures started to steady in evening deals on Thursday. The S&P 500 Futures remained at 5,641.50 points, while Nasdaq 100 Futures held steady at 20,444.25 points. Dow Jones Futures experienced a slight rise to 40,123.0 points by 19:03 ET (23:03 GMT).
While the Consumer Price Index inflation for June came in softer than expected, with headline CPI growing only 3% year-on-year and core CPI at 3.3%, it heightened expectations of a potential interest rate cut by the Federal Reserve starting in September. This caused some concern about potential slowing growth in the U.S. economy.
Despite the increased optimism surrounding possible interest rate cuts, Wall Street saw a retreat from record highs on Thursday. The retreat was largely driven by significant losses in the technology sector, as investors decided to take profits after a period of steady growth fueled by excitement over artificial intelligence.
Tech companies like NVIDIA Corporation and Tesla Inc experienced losses in aftermarket trading, with NVIDIA falling 0.8% and Tesla dropping 2% after a report revealed delays in the launch of autonomous taxis. These losses contributed to tech being the biggest weight on Wall Street, leading to a overall decline of the S&P 500 and NASDAQ Composite indices.
With the second quarter earnings season underway, Wall Street’s attention turned to key bank earnings set to be reported soon. Companies like JPMorgan Chase & Co, Wells Fargo & Company, Citigroup Inc, and Bank of New York Mellon are expected to shed light on the performance of the U.S. economy in the second quarter.
Overall, the impact of cooling inflation, profit-taking, and concerns over potential interest rate cuts have added a layer of uncertainty to Wall Street, challenging the recent bullish trends in the market. It remains to be seen how these factors will shape the future trajectory of U.S. stock index futures and the broader economy.