US stock futures are pointing higher this morning, with contracts tied to a broad market benchmark up about 0.2 percent as investors weigh two big forces: steady inflation and a cooling but still solid job market. The Fed’s preferred inflation gauge is expected to hold near 2.8 to 2.9 percent a year, which means the cost of living is easing but not fast enough for aggressive rate cuts. At the same time, new jobless claims are at a three year low, showing companies are still hanging on to workers. The big question is whether this mix justifies fewer rate cuts than markets hope, a call that puts rate sensitive sectors such as housing related names and high growth tech firmly in the spotlight.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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