Nasdaq 100 index inched lower after better-than-expected US PPI data. US stock futures were mixed on Thursday ahead of the US weekly jobless claims. Dow Jones futures, as well as S&P 500 futures, edged lower while Nasdaq 100 futures slightly increased.
US Economic Concerns
Nasdaq 100 index was in the red after the release of the US Producer Price Index for June. The final demand index was hovering records high after advancing 7.3% on a year-on-year basis. It was up 1.0% MoM surpassing the 0.6% estimate.
Inflation pressures have been hovering over the markets after the release of the US Consumer Price Index (CPI) for June. Last month’s CPI came in higher than expected at 5.4%, the highest monthly increase in 13 years. Being the key US inflation data, it increased inflation pressures.
Investors have been eyeing Jerome Powell’s semi-annual appearance before the congress. According to the Fed’s chair statement on Wednesday, the Federal Reserve is still reluctant about tapering its monetary policy.
Powell said that despite the faster-than-expected rise in inflation, it would be too soon to start scaling back its monetary support. He reiterated he still thinks the inflation pressures could ease in the second half of this year.
However, the Fed chairman stated that the Fed would not hesitate to raise its interest rates to keep inflation under control. Other central banks such as the Reserve Bank of New Zealand as well the Bank of Canada turned hawkish towards the monetary policies.
The Nasdaq 100 index will react to the US weekly initial jobless claims data later in the day. The jobless claims are expected to reduce to 360,000 after increasing to 373,000 in the week ending July 3. Employment rates have been improving albeit they have not yet stabilized.
Nasdaq 100 Movers
Netflix Inc was the best performer in pre-market trading. The production company gained more than 2.66% in its stock earnings. The company marked its first big move outside TV shows and films after announcing its plans to offer video games on its streaming platform.
Advanced Micro Devices (AMD) was also among the best performers in the Nasdaq 100 pre-market trade. AMD gained 1.95% in its stock earnings. The semiconductor company snapped from its losing streak ahead of the company’s earnings report.
Tesla Inc edged 1.40% higher in pre-market trade. The electronic car company had been on a downward trend after facing competition from its rivals.