Stock futures were trending below parity in the early hours of Thursday as investors’ hopes of a positive number for April’s inflation were crushed.
Futures on the Dow Jones Industrial Average (DJIA) were down by 0.25% as of 4:20 a.m. EST, Thursday. Meanwhile, the S&P 500 (SPX) futures fell 0.38%, whereas the Nasdaq 100 (NDX) futures edged 0.76% lower.
The consumer price index reading for April, which was out on Wednesday, revealed that inflation is still raging on relentlessly. April’s CPI climbed 8.3% year-over-year, crossing the Dow consensus prediction of 8.1%.
Despite being lower than March, April’s price rise was still too close to March’s 8.5% inflation (40-year-high) to have any significant impact on investor sentiment. Analysts are still not entirely convinced about whether inflation has peaked or if there is more room for it to climb.
The data led the major averages of the U.S. stock market to pull back and end the regular trading session of Wednesday in red. The Dow shed 1.02% while the S&P 500 and Nasdaq 100 slipped 1.65% and 3.06% respectively at market close.
In the earnings arena, Bumble (BMBL) and Rivian (RIVN) climbed more than 7% and 4% respectively in the after-hours trading on Thursday, on strong quarterly earnings reports. Meanwhile, Disney’s (DIS) solid earnings report was overshadowed by the headwinds it is facing in Asia due to Covid, leading to a 3.24% decline in shares in the extended trading session Thursday.
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