US equity futures were little changed on Thursday, consolidating the prior session’s losses, which left the main benchmarks at their lowest levels in four months, as the renewed surge in energy prices heightened stagflation concerns. Futures on the three major US indices hovered just below the flatline.
Global oil and natural gas benchmarks extended their gains after Iranian strikes on Qatari and Saudi energy infrastructure, amplifying the inflationary shock that has persisted since the onset of the war. These pressures come on top of an already strong February PPI print, recorded before the conflict began, prompting a number of FOMC policymakers to signal they do not expect to cut interest rates this year despite emerging signs of a cooling labor market.
Stocks tied to the artificial intelligence theme traded mostly lower in premarket dealings after Micron projected higher capital spending, overshadowing robust quarterly results driven by stronger memory pricing and profits. Shares of Nvidia, Broadcom, and AMD were each down by close to 1% before the opening bell.
