US stock futures creep higher as markets digest hot CPI reading

U.S. stock index futures rose marginally on Wednesday evening as investors digested a hot reading on consumer inflation, which lessened the prospect of interest rate cuts in the near-term.

Wall Street indexes ended mostly lower after the inflation data, although losses were tempered by a strong batch of quarterly earnings reports. But caution over increased trade tariffs under President Donald Trump kept Wall Street trading largely rangebound this week.

S&P 500 Futures rose 0.1% to 6,078.50 points, while Nasdaq 100 Futures rose 0.2% to 21,855.0 points by 18:35 ET (23:35 GMT). Dow Jones Futures rose 0.1% to 44,507.0 points.

Hot CPI data further quells rate cut bets
Consumer price index inflation data for January read hotter-than-expected on Wednesday, furthering expectations that U.S. interest rates will remain unchanged in the near future.

Federal Reserve Chair Jerome Powell said in a testimony before Congress that the central bank will have to wait until it was clear inflation was moving towards its 2% goal before cutting rates further. The Fed had slashed rates by 1% through 2024.

But Powell flagged strength in the economy which, along with a robust labor market, gave the central bank enough headroom to let restrictive policy eventually bring down inflation.

Trump has also vowed to bring down high inflation, which he blames on the Biden administration. But analysts and Fed officials have cautioned that his agenda of trade tariffs- which will be paid by U.S. importers- could underpin inflation in the coming months.3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Trump this week approved 25% tariffs on steel and aluminum imports. He also flagged the potential for reciprocal tariffs against major U.S. trading partners.

Wall St falls, but strong earnings stem losses
Wall Street indexes mostly retreated on Wednesday, although strong earnings from CVS Health Corp (NYSE:CVS) and Gilead Sciences Inc (NASDAQ:GILD) helped limit overall losses.

CVS rallied nearly 15%, while Gilead added 7.5%.

Robinhood Markets Inc (NASDAQ:HOOD), MGM Resorts International (NYSE:MGM), Applovin Corp (NASDAQ:APP), and Dutch Bros Inc (NYSE:BROS) also soared in aftermarket trade on strong quarterly earnings.

But Wall Street indexes were nursing a largely rangebound performance over the past week, amid persistent concerns over high interest rates, sticky inflation, and a brewing trade war under Trump.

Trump’s tariff policies have been a major source of uncertainty, given that they stand to disrupt global trade, and could also underpin inflation.

The S&P 500 fell 0.3% to 6,051.92 points, while the NASDAQ Composite ended flat at 19,649.95 points. The Dow Jones Industrial Average fell 0.5% to 44,368.68 points.