Investing.com-- U.S. stock index futures edged slightly higher Thursday as investors digested the latest inflation data ahead of an eagerly-awaited speech by Federal Reserve Chair Jerome Powell.
At 05:55 ET (10:55 GMT), Dow Jones Futures rose 50 points, or 0.1%, S&P 500 Futures climbed 6 points, or 0.1%, while Nasdaq 100 Futures climbed 10 points, or 0.1%.
The main Wall Street indices closed largely unchanged Wednesday as the risk-on rally in the wake of Donald Trump’s election victory now appeared to be cooling.
Powell speech in focus
Investors will focus on an address by Fed Chair Jerome Powell later in the session for more cues on monetary policy, after the central bank cut rates by 25 bps last week.
How Powell sees inflation evolving in the coming months could be a major factor driving market sentiment, particularly with some economists predicting that President-elect Trump's policy proposals may place renewed upward pressure on prices -- and persuade the Fed to leave rates at a higher level.
Data released on Wednesday showed US inflation remained sticky, as the headline rate rose slightly year-on-year, while core inflation remained pinned above 3%.
Markets increased bets on a December interest rate cut, with traders pricing in a 85.3% chance for a 25 basis point cut next month, up sharply from a 60.2% chance seen earlier this week, according to CME Fedwatch.
However, there remains a great deal of uncertainty over inflation and interest rates in the long term, particularly with the new Trump administration expected to dole out more expansionary policies, underpinning inflation and interest rates in the long term.
The October producer price index, due later in the session, could help to lessen that uncertanity.
Disney earnings due
On the corporate front, results are due from the likes of chip gear provider Applied Materials (NASDAQ:AMAT) and media giant Walt Disney (NYSE:DIS).
Additionally, Cisco Systems (NASDAQ:CSCO) stock slipped 4% lower premarket after the networking equipment manufacturer unveiled a tepid full-year outlook, while reporting a fourth straight quarter of declining revenue.
Advanced Micro Devices (NASDAQ:AMD) stock rose 1.4% premarket after the chipmaker said it will lay off 4% of its global staff, or around 1,000 positions.
Crude weighed by demand concerns
Oil prices edged higher Thursday, but gains have been limited by concerns surrounding global demand growth as well as higher production.
By 05:55 ET, the Brent contract was 0.4% higher to $72.53 per barrel, while U.S. crude futures (WTI) traded 0.3% higher to $68.66 a barrel.
The Organization of the Petroleum Exporting Countries cut its forecast for world oil demand growth in both 2024 and 2025 earlier in the week, mainly on worries around top importer China’s demand, and the International Energy Agency is likely to follow suit when it publishes its monthly report later in the session.
Meanwhile, the US Energy Information Administration slightly raised its expectation of US oil output this year, while also increasing its global oil output forecast for 2024.
The EIA publishes its weekly crude oil and product stockpile data later in the session, a day later than usual following Monday’s Veterans’ Day holiday in the US.
(Ambar Warrick contributed to this article.)