Stock futures wavered around the flatline on Friday, as investors continued to weigh whether a rise in consumer inflation or signs of disinflation in July’s report were more telling for the path of interest rates.
Trading was muted ahead of fresh producer price data, which could provide more insight into the inflation story and the prospects for a rate reprieve from the Federal Reserve.
Futures on the Dow Jones Industrial Average (^DJI) were broadly unchanged, while S&P 500 (^GSPC) futures dropped about 0.1%. Tech-heavy Nasdaq 100 futures shed almost 0.3%. The gauges closed slightly higher after paring larger gains earlier in the session.
While Thursday’s CPI reading showed inflation heated up again for the first time in 13 months, some see convincing signs that price pressures are easing — making it more likely the Federal Reserve won’t hike interest rates at its next meeting.
But in an interview with Yahoo Finance, San Francisco Reserve Bank President Mary Daly said the Fed still has “more work to do” to cool price pressures. Those hawkish comments helped spark some doubt about the inflation data, broadly seen as positive.
More Yahoo Finance inflation coverage: