Wall Street stocks are poised for a higher open on Thursday, with growing confidence that the Federal Reserve will not raise interest rates at its next meeting after inflation in August showed a modest rise.
S&P 500 futures (^GSPC) rose 0.4%, while Dow Jones Industrial Average (^DJI) futures rose 0.3%, or about 100 points. Nasdaq 100 futures added about 0.5%, with technology investors counting down to Arm’s IPO.
Despite much anticipation, markets were little affected by Wednesday’s consumer inflation report. Economists said last month’s price rise would not be enough to prompt the Fed to change course. Traders now see there is a 97% chance policymakers will keep interest rates steady at their meeting on September 19-20, according to Data from CME group.
More inflation data due on Thursday could weigh on these bets, with an August update to producer prices and retail sales due before the bell. There is also a reading of unemployment claims.
All eyes will also be on Arm’s Nasdaq debut on Thursday, after the Softbank-backed chip designer priced its blockbuster IPO at the top of the range at $51 per share, for a valuation of $52 billion.
The focus was also on the continuing rise in oil prices, given its significant impact on inflation and stocks. WTI (CL=F) and Brent (BZ=F) futures traded near 10-month highs on Thursday.
Elsewhere, it is seen as a close call on whether the European Central Bank will pause its record string of interest rate hikes on Thursday morning.
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