U.S. Stock Futures Slide Amid Inflation Concerns and Rate Speculation
U.S. stock index futures dropped on caution ahead of crucial inflation data that could influence the Federal Reserve's September interest-rate decision. Tech stocks led declines while Nvidia's strong performance somewhat mitigated AI infrastructure demand concerns. Markets anticipate the Fed may ease borrowing rates, though economic resilience is noted.
Caution gripped the U.S. stock index futures on Friday as investors braced for a vital inflation report capable of steering the Federal Reserve's upcoming interest-rate choice. This led to a decline in contracts, with tech-heavy Nasdaq futures taking the hardest hit.
Both Dell and Marvell tumbled after issuing quarterly forecasts that underwhelmed investors, while Nvidia alleviated some concerns about the demand for AI infrastructure despite geopolitical uncertainties.
The markets now anxiously await the Personal Consumption Expenditures index, the Fed's favored gauge of inflation, which economists predict will demonstrate steady inflation pressure. Traders are weighing the odds of an interest-rate cut, underscored by dovish remarks from Fed Chair Jerome Powell.
(With inputs from agencies.)
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