US pre-open: Stocks set for more gains ahead of PPI data

US stock futures pointed to a firmer open on Wall Street on Thursday, as investors eyed the release of more inflation data following a softer-than-expected consumer price inflation print a day earlier.

At 1100 BST, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were 0.3% and 0.6% higher, respectively.

Joshua Mahony, chief market analyst at Scope Markets, said: "Wall Street is on fine form in the wake of yesterday’s muted inflation readings. Whilst conviction may still be behind the Fed making one more quarter point rate hike, expectations now have to be sliding towards this being the top of the policy tightening cycle. The S&P posting a fresh closing high for the year last night encapsulated sentiment and there’s certainly little evidence to suggest that a hard landing for the economy could be on the cards.

"Economic data today will be focused on the PPI releases which are set to show the lowest annualised rate since the early days of the Covid pandemic, again underlining the idea that easing inflationary pressures are now entrenched in the US, rather than being a flash in the pan. Q2 earnings season also gets underway so expect this to be closely followed especially for any signs of emerging weakness in terms of discretionary consumer spending. With PepsiCo and Delta Airlines both due to report before the bell, this could offer fresh insight."

Mahony called the Dow up 60 points at 34,407 and the S&P up 13 at 4,485.

The producer price index for June is due at 1330 BST, along with the latest initial jobless claims figures.

On the corporate front, Viasat tumbled in pre-market trade after it said late on Wednesday that one of its recently-launched satellites had suffered a malfunction while deploying its reflector.

Second-quarter earnings are due on Friday from JPMorgan, Citigroup and Wells Fargo.