Investing.com– U.S. stock index futures fell slightly Thursday as Wall Street cooled from record highs, weighed by disappointing results from software giant Adobe (NASDAQ:).
At 05:30 ET (10:30 GMT), fell 60 points, or 0.1%, slipped 8 points, or 0.1%, and dropped 50 points, or 0.2%.
Futures slipped slightly after Wall Street indexes- particularly the Nasdaq- hit a record high during the session, with technology stocks rallying sharply on the prospect of lower rates in the near term.
The surged 1.8%, climbing above 20,000 for the first, and the rose 0.8%. The lagged, falling 0.2% weighed chiefly by losses in major insurance and pharmacy benefit manager stocks, after lawmakers introduced a bipartisan bill to force health insurers to divest their pharmacy businesses.
PPI data due next, after CPI boosts December rate cut expectations
data, released on Wednesday, came in largely in line with expectations, quelling some concerns that it would overshoot estimates.
This furthered bets that the Fed will cut interest rates by 25 basis points when it meets next week, with traders pricing in a 98.1% chance for a cut next week, up sharply from the 81% chance seen last week, according to .
Focus is now on data later in the session, which comes less than a week before the Fed’s final meeting for the year. While the central bank is widely expected to , investors are less certain about its long term outlook on rates, especially in the face of sticky inflation.
Expansionary and protectionist policies under incoming President Donald Trump are also expected to drive up prices.
Adobe disappoints with sales guidance
Adobe stock slumped in premarket trading after the software giant issued a disappointing annual sales outlook, indicating that the company’s recent measures to incorporate artificial intelligence into its offerings were taking longer than expected to generate returns.
Adobe, known for its software for creative professionals, has ramped up its investments in AI amid increased competition from smaller players, whose image generating software is expected to eat into Adobe’s market share.
Elsewhere, the likes of chip giant Broadcom (NASDAQ:), home furnishings company RH (NYSE:) and retailer Costco Wholesale (NASDAQ:) are due to report after the close.
Crude steadies after gains
Crude prices were little changed Thursday, as traders digested a number of factors, including the potential for more US oil sanctions, fresh stimulus measures in China and a dour outlook on oil demand from OPEC.
By 05:30 ET, the US crude futures (WTI) gained 0.2% to $70.42 a barrel, while the Brent contract rose 0.1% to $73.60 a barrel.
Prices steadied after rising sharply in the prior session on expectations of tighter global supplies, after the US was seen preparing more oil sanctions against Russia. Prices were also sitting on gains made after top importer China signaled more incoming economic support earlier this week.
US Treasury Secretary Janet Yellen stated on Wednesday that a weaker global oil market could present a chance for additional action against Russia’s energy sector.
On the flip side, the Organization of the Petroleum Exporting Countries, known as OPEC, cut its forecasts for oil demand growth in 2024 and 2025, on Wednesday, its fifth consecutive downward revision.
Government inventory data released on Wednesday showed that US oil inventories unexpectedly grew more than expected in the week to Dec. 6.
(Ambar Warrick contributed to this article.)
