Dow futures rise ahead of PPI inflation report; hand eye

Investors were betting that the Federal Reserve would keep interest rates steady next week as they took comfort in a CBI report that showed only a moderate rise in inflation.

Across the Atlantic, opinion was divided on whether the European Central Bank would raise rates for the 10th straight time on Thursday to curb persistent signs of inflation or keep them steady to protect the region’s flagging economy.

US data released on Thursday will give more insight into inflation and the broader economy. The producer price index, which generally reflects supply conditions, is due at 8:30 a.m. ET, along with weekly jobless claims and retail sales data.

Futures for the S&P 500, Dow Industrials and Nasdaq-100 were higher. The broader market index and tech-heavy Nasdaq posted moderate gains on Wednesday.

Arm is set to begin trading on the Nasdaq today, a key test for both the IPO market and the hype surrounding artificial intelligence. The British chip designer has set a price target of $51 per share.

US government bond yields rose. The yield on the benchmark 10-year Treasury note hit 4.257%, up from 4.248% on Wednesday.

Brent crude futures near a 10-month high. Both the International Energy Agency and OPEC released reports this week that pointed to a growing supply-demand gap.

European indices, the euro and key government bonds were mostly flat ahead of the ECB meeting. Asian stocks were mostly higher.

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