US stock futures edged higher on Thursday as investors waited for fresh inflation and labor data to test high-running expectations for a quarter-point interest-rate cut next week.
Futures on the S&P 500 (ES=F) and the Nasdaq 100 (NQ=F) were up about 0.2%, coming off sharp closing gains fueled by a tech rally. Dow Jones Industrial Average futures (YM=F) also tipped roughly 0.2% higher.
The market is regrouping after a seesaw Wednesday that saw revived enthusiasm for tech growth pull stocks out of a slide driven by rapidly ebbing hopes for a jumbo-sized 0.5% rate cut by the Federal Reserve.
A fresh "core" consumer inflation reading came in hotter than expected — just slightly, but enough to keep the Fed on track for a 25 basis point move in its Sept. 18 decision. Traders' odds of a cut that size now stand at 85%, from around 50% just days ago.
Read more:Fed predictions for 2024: What experts say about the possibility of a rate cut
Eyes are now on Thursday's updates on wholesale inflation and unemployment to give those rate bets a reality check. The producer price index for August is expected to show a rise on July's figures, while weekly jobless claims are seen as coming in slightly lower.
Meanwhile, tech-watching investors digested news that OpenAI is in talks to raise funds at a $150 billion valuation, more than double the $86 billion level seen for the startup earlier this year.