Market Moves: Investors Eye Inflation Report Amid Economic Shifts

U.S. stock futures fell on Thursday as investors awaited an inflation report crucial for understanding future monetary policy. Despite strong economic data lowering chances of a significant Federal Reserve rate cut, attention remains on the CPI report, third-quarter earnings, and external factors like oil prices and the U.S. election.

U.S. stock futures declined on Thursday morning as investors anticipated a key inflation report, expected to offer insights into the Federal Reserve's monetary direction for the year. Markets showed a mixed reaction after record highs in the Dow and S&P 500 on Wednesday.

Traders have adjusted their expectations following recent robust economic data, now predicting a slim chance of a 50-basis-point rate cut. The upcoming consumer price index (CPI) report could provide further clarity on the central bank's inflation strategy.

Amid these market dynamics, investors are also focused on the start of the third-quarter earnings season, which will test the resilience of the current equity rally. Additionally, rising Treasury yields, geopolitical tensions, and the approaching U.S. presidential election further complicate the investment landscape.

(With inputs from agencies.)