Stock markets today: S&P 500, Nasdaq futures steady ahead of more inflation data

U.S. stock futures edged higher on Thursday as investors awaited 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 Nasdaq 100 (NQ=F) rose about 0.2%, led by sharp closing gains fueled by a technical rally. Dow Jones Industrial Average futures (YM=F) were roughly 0.2% higher.

Markets rallied on Wednesday after renewed stimulus for tech growth pulled stocks from a slide fueled by a sharp reduction in hopes of a jumbo-sized 0.5% rate cut by the Federal Reserve.

A new “core” consumer inflation reading came in hotter than expected — slightly, but enough to keep the Fed on track for a 25 basis point move in its Sept. 18 decision. The probability of traders making that size cut now stands at 85%, up from around 50% a few days ago.

Read more: Fed forecast for 2024: What experts say about rate cut prospects

A look at Thursday's update on wholesale inflation and unemployment now gives those rate bets a reality check. August's producer price index is expected to show an increase in July figures, while weekly jobless claims are seen coming in slightly lower.

Meanwhile, tech-watching investors have digested news that OpenAI is in talks to raise funding at a $150 billion valuation, more than double the $86 billion level seen for the startup earlier this year.