US equity futures tied to the Dow Jones showed little movement on Friday as the US inflation rate didn’t significantly deviate from expectations. This followed a period of selling pressure, particularly impacting AI-related companies. The market is currently factoring in the likelihood of multiple rate cuts by the Federal Reserve later in the year.
- US equity futures erased slight losses.
- The Dow Jones was muted, holding yesterday’s sharp selling pressure on AI companies.
- The headline inflation rate fell in January while the core rate eased as expected.
- Market bets are maintained that the Federal Reserve will cut rates multiple times this year.
The lack of significant movement in the Dow Jones indicates a market in a holding pattern, reacting more to broader economic data and sector-specific news than forging a clear upward or downward trend. The stability in the face of inflation data suggests that investors are cautiously optimistic about the economic outlook and the potential for future monetary policy easing.