U.S. stock futures dipped on Thursday morning after the Nasdaq Composite index (NDAQ) closed above the 20,000 level for the first time, driven by gains in technology stocks. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.17%, 0.25%, and 0.14%, respectively, at 3:30 a.m. EST, December 12.
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The previous day, the Nasdaq Composite and the S&P 500 gained 1.8% and 0.8%, respectively. However, the Dow Jones declined 0.2% on Wednesday.
Investor sentiment was buoyed by the November Consumer Price Index (CPI) report, which came in line with expectations. The data helped boost hopes for a potential rate cut by the Federal Reserve in its next meeting. However, the recent market rally has driven valuations to historically high levels, raising concerns about the possibility of a correction.
In major news, Google-parent Alphabet (GOOGL) rallied 5.5% as its new quantum computing chip kept investors optimistic about the company’s future prospects. Also, Tesla (TSLA) gained 6% and hit an all-time high for the first time in three years on news that it plans to launch a lower-cost vehicle in 2025. In addition, Broadcom (AVGO) surged 6.6% after it joined hands with Apple (AAPL) to develop a new AI chip.
Moving on, investors will be awaiting the release of the Producer Price Index (PPI) data for November today, which will provide further insights into inflationary trends. Additionally, the Weekly Jobless Claims report will offer clues about the health of the labor market.
On the corporate front, several companies, including Broadcom, RH (RH), and Costco Wholesale (COST), are scheduled to report earnings after the market closes today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.291% at the time of writing. At the same time, WTI crude oil futures are trending higher, hovering near $70.49 per barrel as of the last check.
Elsewhere, European indices opened higher on Thursday morning as investors looked ahead to the European Central Bank’s (ECB) final monetary policy decision for 2024, due later this week.
Asia-Pacific Markets Ended Higher on Thursday
Asia-Pacific indices closed higher today following Nasdaq’s strong rally yesterday due to a favorable November inflation report.
At the same time, Japan’s Nikkei and Topix indices climbed 0.85% and 1%, respectively. Further, China’s Shanghai Composite and Shenzhen Component indices gained 1.21% and 0.86%, respectively. Also, Hong Kong’s Hang Seng Index surged 1.2%.
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