Stock Market Live Updates: US Futures Show Strength Despite Elevated Inflation Data

Retail sales showed a remarkable recovery in February, bouncing back from their sharpest decline in almost a year experienced in the previous month.

According to data from the Census Bureau, retail sales increased by 0.6% in February compared to the previous month. Despite expectations of a larger 0.8% rise in spending, as indicated by Bloomberg data, the actual increase still signals a positive trend. Notably, January's retail sales had unexpectedly dropped by 1.1%.

Excluding auto and gas sales, February saw a more modest increase of 0.3%, aligning with economists' estimates. This suggests a more stable and consistent growth pattern in consumer spending.

Despite a significant uptick in wholesale inflation data, stocks showed resilience on Thursday.

The S&P 500 index (^GSPC) recorded a modest 0.1% increase, while the Dow Jones Industrial Average (^DJI) surged by 0.3%, equivalent to over 100 points. Similarly, the Nasdaq Composite index (^IXIC) experienced a 0.2% gain, rebounding from losses observed the previous day.

Nvidia (NVDA) started the day with a decline for the second consecutive day. The chipmaker, along with Tesla (TSLA), had contributed to dragging down stock prices on Wednesday.

February witnessed a notable surge in the Producer Price Index, rising by 0.6%, surpassing the expected 0.3% increase. Investors closely monitored this data amid speculations that Federal Reserve policymakers might affirm their commitment to potential rate cuts later this year, following next week's Fed meeting.

Stocks kicked off the day with upward momentum but quickly reversed course, heading into negative territory early on.

The S&P 500 index (^GSPC) witnessed a downturn of 0.3%, while the Dow Jones Industrial Average (^DJI) also experienced a 0.4% decline, equating to a drop of around 100 points. Simultaneously, the Nasdaq Composite index (^IXIC) slipped beneath the flatline.

Nvidia (NVDA) commenced trading with another day of losses, marking its second consecutive decline. Alongside Tesla (TSLA), the chipmaker's performance contributed to dragging down stock prices in the previous session.

February's Producer Price Index saw a notable uptick of 0.6%, surpassing the projected rise of 0.3%. Investors closely monitored this development as it stands as the final significant data point prior to next week's pivotal Federal Reserve policy meeting.

Oil prices surged by over 1% on Thursday, building upon gains from the previous session, driven by declining inventories and ongoing drone attacks targeting Russian refineries.

West Texas Intermediate (WTI) crude oil (CL=F) remained slightly above the $81 per barrel mark, while Brent crude (BZ=F), the global benchmark, traded at levels exceeding $85 per barrel.

Data released by the Energy Information Administration indicated a decrease in US crude oil inventories over the previous week.

The escalation of drone attacks on Russian refineries in the backdrop of the Ukraine-Russia conflict in recent days has further influenced oil market dynamics.

The Federal Reserve's cautious stance on reducing interest rates received reinforcement from fresh inflation data released on Thursday, suggesting that interest rates may remain elevated for a longer duration in 2024 than previously anticipated.

Lindsey Piegza from Stifel emphasized, "Given the persistent nature of inflation, it will be challenging for the Fed to justify an immediate rate cut. Our expectation is that the Fed will delay any policy changes until the latter half of the year."

The latest inflation figures, derived from the Labor Department's Producer Price Index, revealed a 0.6% increase from January to February, marking an uptick from the 0.3% rise observed in the preceding month. Notably, "core" producer prices, which exclude volatile food and energy costs, experienced a 0.3% month-over-month increase. The Federal Reserve closely monitors these core prices as a key indicator of inflationary trends.

Microsoft (MSFT):

• Microsoft emerged as the top trending ticker on Yahoo Finance on Thursday. The tech giant's stock surged over 2%, reaching a record high and trading just above $426 per share.
• Year-to-date, Microsoft's stock has seen an impressive uptick of approximately 15%.

Robinhood (HOOD):

• Shares of Robinhood Markets experienced a notable increase of more than 7% on Thursday. This surge followed the brokerage platform's announcement of robust growth in assets under custody (AUC) for February, indicating momentum in both stock and crypto trading.
• Assets under custody for Robinhood rose by 16% in February compared to the previous month, reaching $118.7 billion.

Fisker (FSR):

• Fisker's stock plummeted by over 50% on Thursday following reports from The Wall Street Journal indicating that the electric vehicle startup is exploring the possibility of bankruptcy.
• This development comes in the wake of Fisker's recent warning about its financial viability, including concerns about its ability to continue operations as a going concern. Additionally, the company announced a 15% reduction in its workforce just two weeks ago.