Dow Jones: US Indices Flat as Cisco Gains Amid Inflation and Trade Fears

Stock Futures Steady as Inflation and Trade Fears Keep Traders on Edge

U.S. stock futures were little changed early Thursday as investors braced for fresh inflation data while global trade concerns added uncertainty. The January Producer Price Index (PPI) is set for release at 13:30 GMT, with economists expecting a 0.3% increase. Meanwhile, traders remain cautious after President Donald Trump vowed to impose reciprocal tariffs, raising fears of escalating trade tensions.

Markets struggled in the previous session, with the Dow dropping over 200 points and the S&P 500 slipping 0.3% after hotter-than-expected consumer inflation data. The Nasdaq Composite managed to hold just above flat. Treasury yields initially spiked on the report but have since pulled back as investors reassess Federal Reserve policy expectations.

At 12:44 GMT, Dow Futures are trading 44,473.00, up 11.00 or +0.02%. S&P 500 Index Futures are at 6071.00, down 1.75 or -0.03% and Nasdaq 100 Index Futures are trading 21,823.50, up 18.75 or +0.09%.

Will Inflation Data Pressure the Fed to Keep Rates Higher?

The latest Consumer Price Index (CPI) report showed prices rising 0.5% month-over-month, exceeding forecasts of 0.3%. Core inflation, which strips out food and energy, climbed 0.4%, reinforcing concerns that inflation remains sticky.

Today’s PPI release will be closely watched for confirmation of inflation trends at the wholesale level. A stronger-than-expected number could push Treasury yields higher and weigh on stocks, particularly in growth sectors like technology. Alongside PPI, the weekly jobless claims report will provide additional clues about labor market strength, another key factor in the Fed’s rate path.

Which Stocks Are Moving Before the Open?

Earnings season continues to drive big swings in individual stocks. Cisco is in focus after reporting strong results, with shares up 6.6% premarket. The networking giant posted accelerating product orders and highlighted growing demand for AI-related infrastructure. The company also raised its dividend and expanded its buyback program by $15 billion.

Elsewhere, Dutch Bros soared 25% after posting better-than-expected earnings and same-store sales growth. Robinhood jumped 13% following a revenue beat, while Reddit slid 13% after reporting disappointing user numbers.

Will Trade Tensions Drag Down Industrial and Consumer Stocks?

Trump’s announcement of reciprocal tariffs could have broad market implications, particularly for industrials and consumer-facing companies with global exposure. Stocks like Caterpillar and Home Depot, which were among the biggest drags on the Dow Wednesday, could see continued volatility.

If tariff fears intensify, investors may shift toward defensive sectors such as healthcare and consumer staples. Meanwhile, technology stocks—already pressured by rising yields—could face additional headwinds if trade uncertainty escalates.

How Will Markets React at the Open?

With inflation and trade policy in focus, markets could see choppy action heading into the cash session. A hotter-than-expected PPI reading might reinforce concerns that the Fed will keep rates elevated, putting pressure on equities. Conversely, a softer reading could provide some relief and support a rebound in growth stocks.

Earnings reports from major consumer and tech firms will add another layer of volatility. Traders will be watching for any shifts in market sentiment as key data releases shape expectations for interest rates and economic growth.

More Information in our Economic Calendar.