Wall Street Holds Steady as Traders Brace for Fed’s Favorite Inflation Report

U.S. stock futures were nearly unchanged late Wednesday, CNBC reported, as traders positioned themselves ahead of the April PCE inflation report arriving Thursday morning.

S&P 500 and Nasdaq 100 futures each edged up less than 0.1%. Dow futures added around 49 points, or roughly 0.1%, following a strong regular session.

Records Fall as Oil Retreats

Wednesday’s trading session ended on a positive note across major indices. A pullback in crude oil prices drove the Dow Jones Industrial Average to fresh intraday and closing records, with the 30-stock benchmark gaining about 183 points, or 0.36%. The S&P 500 also closed at a record, adding a marginal 0.02%, while the Nasdaq Composite inched 0.07% higher.

Oil prices declined after Secretary of State Marco Rubio indicated that diplomacy with Iran was progressing. Speaking at a White House Cabinet meeting, he said the administration favored a negotiated path. However, President Donald Trump separately stated he would not permit Iran to control the Strait of Hormuz under any agreement. The White House also rejected an Iranian state media report about a memorandum of understanding, calling it fabricated.

Snowflake Surges on $6 Billion AWS Commitment

One of the session’s sharpest moves came from Snowflake, whose shares jumped around 30% in after-hours trading. The cloud data company announced a five-year, $6 billion spending commitment with Amazon Web Services. The company also posted first-quarter results that beat analyst expectations on both revenue and earnings.

Background: Why This PCE Reading Matters More Than Usual

The PCE index has long served as the Federal Reserve’s benchmark inflation measure. Its April reading carries added weight following the recent leadership change at the central bank. Kevin Warsh has assumed the Fed chair role, and markets are keen to understand how the new leadership will interpret incoming price data.

Economists surveyed by Dow Jones anticipate a monthly gain of 0.5% and an annual rise of 3.8% for the headline reading. Core PCE, which strips out food and energy, is forecast to climb 0.3% month-over-month and 3.3% year-over-year.

Rotation Calls Grow Louder Among Strategists

Technology stocks have driven much of this year’s market advance into record territory. But Adam Crisafulli, founder of Vital Knowledge, told CNBC that the sector looks overstretched. He pointed to a wave of high-profile IPOs and fresh trillion-dollar valuations as signals that investors should look elsewhere. He suggested a rotation away from tech could define market activity through the summer months.

Beyond the PCE print, Thursday also brings weekly jobless claims, new home sales, personal income data, and a preliminary reading on durable goods orders.

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