US stock index futures fell slightly on Wednesday ahead of the publication of the following key inflation data.
Dow Jones futures fell 75 points, or 0.2%, S&P 500 futures fell 8 points, or 0.1%, and Nasdaq 100 futures fell 9 points, or 0.1%.
Wall Street’s major indexes ended Tuesday with mixed results, as Federal Reserve Chairman Jerome Powell’s latest comments on interest rates weighed on market sentiment. In the first of two days of testimony before Congress, Powell stated that the Federal Reserve is in no hurry to resume rate cuts after a series of reductions last year, largely citing signs of broad resilience in the US economy.
The Dow Jones Industrial Average rose 0.3% on Tuesday, the S&P 500 ended flat, and the Nasdaq Composite declined 0.4%.
Consumer Inflation in the Spotlight
Markets are bracing for the release of a key monthly US inflation report later in the session, which could influence the Federal Reserve’s approach to monetary policy in 2025.
Economists forecast that overall consumer prices grew at an annual rate of 2.9% in January, matching December’s pace, while the monthly rate is expected to slow to 0.3% from 0.4%.
The core inflation measure, which excludes volatile prices such as fuel and food, is estimated to ease slightly from 3.2% to 3.1% year-on-year, though it is expected to rise from 0.2% to 0.3% on a monthly basis.
Inflation has steadily declined since the post-pandemic surge, although Federal Reserve Chairman Jerome Powell told the Senate Banking Committee on Tuesday that the Fed is in no rush to cut interest rates. He noted that rates had already been reduced by about 1% last year and that the economy remains strong.
Powell is scheduled to speak before Congress on Wednesday, where he is likely to be questioned about the impact of Trump’s policies on the economy and inflation. Several Federal Reserve officials have indicated that Trump’s tariffs could contribute to inflationary pressures.
Cisco Leads the Earnings Parade
Cisco Systems (CSCO) will report quarterly results on Wednesday after the closing bell, with analysts closely monitoring demand for the company’s artificial intelligence-powered networking equipment.
Healthcare giant CVS Health (CVS) and e-commerce platform Robinhood (HOOD) are also set to report results, as the wave of corporate earnings begins to slow.
Meanwhile, DoorDash (DASH) shares surged 6% ahead of the market opening after the food delivery company posted better-than-expected fourth-quarter revenue following Tuesday’s close.
Shares of Super Micro Computer (SMCI) rose more than 6% before the opening, despite the company lowering its annual revenue forecast. The server manufacturer also stated that it expects to submit its overdue annual and quarterly reports to the Securities and Exchange Commission by February 25, following accusations of “accounting manipulation” made by short-seller Hindenburg Research in August.
Gilead Sciences (GILD) shares climbed 4% in pre-market trading after the biopharmaceutical company exceeded revenue and profit expectations for the fourth quarter.
Crude Oil Retreats on Rising US Reserves
Oil prices declined on Wednesday, pulling back from a two-week high, as an industry report pointed to an unexpected increase in US crude oil reserves, denting market confidence.
These declines ended a three-day streak of price gains, which had pushed oil to two-week highs.
US crude oil inventories saw a sharp increase last week, rising by 9 million barrels in the week ending January 31, according to the latest data from the American Petroleum Institute.
Official inventory data from the Energy Information Administration will be released later in the day.
