US equity futures were little changed on Wednesday night as investors prepared for a key US inflation report and continued monitoring developments surrounding negotiations between the United States and Iran.
S&P 500 futures and Nasdaq 100 futures both rose 0.1%, while Dow Jones futures added 66 points, or 0.1%.
The muted futures moves followed another record session on Wall Street, with the Dow Jones Industrial Average rising 182.60 points, or 0.36%, to a fresh intraday and closing high. The S&P 500 edged up 0.02% to another record close, while the Nasdaq Composite added 0.07%.
Investor sentiment was supported by falling oil prices and ongoing strength across technology and artificial intelligence-linked sectors.
Snowflake surged 30% in extended trading after announcing plans to spend US$6 billion on Amazon Web Services over five years while also reporting quarterly earnings and revenue ahead of expectations.
Technology stocks have continued driving Wall Street higher this year, although some strategists are beginning to warn that valuations across the sector are becoming stretched.
Adam Crisafulli, founder of Vital Knowledge, said investors may increasingly rotate into broader parts of the market following the strong rally in major technology companies and artificial intelligence-related stocks.
Banking stocks underperformed overnight, with JPMorgan Chase falling almost 2.9% after chief executive Jamie Dimon warned annual expenses could exceed previous guidance by around US$1 billion.
Investors also continued monitoring diplomatic developments after US Secretary of State Marco Rubio said negotiations with Iran had made progress and the administration preferred a diplomatic resolution to the war.
Oil and macro
Oil prices declined further as investors responded positively to signs of progress in negotiations between the US and Iran. Brent crude fell below US$95 a barrel for the first time in more than a month, while US West Texas Intermediate crude settled at US$88.68. The easing in oil prices helped reduce concerns around inflation pressures and the broader economic impact of the Iran war.
Markets are now focused on the release of the US personal consumption expenditures index, the Federal Reserve’s preferred inflation measure, due later on Thursday.
Economists expect headline inflation to rise 0.5% in April and 3.8% over the year, while core inflation is forecast to increase 0.3% monthly and 3.3% annually.
Australian Market Outlook
Australian shares are expected to open higher after another relatively steady session on Wall Street and a further decline in oil prices overnight.
S&P/ASX 200 futures are pointing to gains at the open as easing energy prices improve broader market sentiment.
Technology stocks may remain supported locally following ongoing momentum across US artificial intelligence and cloud-computing companies, while lower oil prices could ease inflation concerns across the broader market.
Investors will also continue monitoring developments surrounding negotiations between the US and Iran and the outlook for global interest rates ahead of the latest US inflation data.
BP remains in focus after former chairman Albert Manifold said he was dismissed without explanation and intends to challenge the company’s account of events.
