Dow Futures are trading predominantly higher on Thursday, buoyed by a favorable update from chipmaker Micron; however, the impending release of the latest U.S. inflation data has the potential to significantly alter market sentiment. Europe is set to witness several central bank policy meetings, with the Bank of England anticipated to be the sole institution to adopt a more accommodative monetary policy stance.

Dow Futures exhibited a predominantly upward trajectory on Thursday, driven by the technology sector’s optimism following a favorable announcement from chipmaker Micron, in anticipation of forthcoming critical inflation data. At 03:55, the S&P 500 futures were up by 18 points, reflecting a change of 0.%, while Nasdaq 100 futures increased by 140 points, corresponding to a rise of 0.6%. Conversely, Dow futures experienced a decline of 35 points, indicating a decrease of 0.1%. Robust figures from Micron Technology have contributed to an uplift in market sentiment, particularly following the previous week’s letdowns from Broadcom and Oracle. Stocks are experiencing another negative session, as both the S&P 500 and the Dow Jones Industrial Average mark their fourth consecutive day of losses. The tech-heavy NASDAQ Composite underperformed among the three major indices, declining by 1.8%, following a more than 5% drop in Oracle’s stock. This decline was prompted by a report indicating that the cloud infrastructure company’s primary investor had withdrawn from its $10 billion Michigan data center project. The economic data calendar is focused on the upcoming release of the latest consumer inflation figures, as investors look for insights into the anticipated trajectory of the Fed’s monetary policy in the coming year.

This week’s economic data indicates a deceleration in the U.S. labor market, as evidenced by the Labor Department’s employment report revealing an unemployment rate exceeding a four-year high of 4.6% in the previous month. The focus shifts to the second element of the U.S. Federal Reserve’s dual mandate on Thursday, as the measure of U.S. monthly consumer prices, frequently employed to monitor inflation in the largest economy globally, is set to be released. The condition of the labor market has emerged as a greater concern for Federal Reserve policymakers compared to persistently high inflationary pressures; however, the Consumer Price Index report remains significant and cannot be overlooked. Both headline and core CPI (excluding food and energy) are anticipated to register at 3.0% year-over-year, aligning with the inflationary pressures reflected in the latest consumer inflation report from September (the October report will remain unpublished due to the U.S. government shutdown). In general terms, the decline of U.S. consumer inflation towards the Federal Reserve’s 2% target has experienced a stagnation for more than a year, with headline CPI readings remaining within the 2.3% to 3.0% year-over-year range throughout this timeframe.

Last week, market sentiment was adversely affected by a series of underwhelming quarterly reports from companies heavily involved in artificial intelligence, such as Oracle and Broadcom. Micron Technology has made significant efforts to stabilize its operations, as the semiconductor manufacturing firm anticipates impressive second-quarter earnings to be reported after the market closes on market Wednesday. The company is experiencing robust demand from data centers, driven by heightened expenditures from major cloud service providers that deliver hardware and cloud capacity as services. This demand is expected to persist moving forward, as Micron CEO Sanjay Mehrotra indicated during a conference call with investors that he anticipates fulfilling only half to two-thirds of the demand from several key customers through 2026. Micron’s chips serve as essential elements across a wide array of applications, including data center servers, personal computers, smartphones, and vehicles. However, it serves as a significant provider of high-bandwidth memory chips, which are crucial for the training and implementation of generative AI models.

Several central bank policy meetings are scheduled in Europe on Thursday for investors to analyze; however, it is anticipated that the Bank of England will emerge as the sole significant actor once the outcomes are assessed. The European Central Bank is anticipated to maintain its rates at 2%, while simultaneously raising its growth forecasts. Similarly, the central banks in Sweden and Norway are expected to remain unchanged at 1.75% and 4%, respectively. Attention will primarily focus on London, where the BoE is anticipated to reduce interest rates to 3.75% from 4.0% following a significant deceleration in inflation and a decline in economic growth. On Wednesday, U.K. inflation experienced a significant decline, reinforcing anticipations of a forthcoming policy easing. However, with a CPI level of 3.2%, the United Kingdom maintains the highest inflation rate among the G7 economies. Market participants are currently anticipating a single additional rate cut from the Bank of England in 2026, expected to occur by the end of April. However, expectations for a second cut have increased following the decline in inflation observed in November.

Oil prices experienced an uptick on Friday in response to President Donald Trump’s directive to impose a blockade on sanctioned oil tankers navigating to and from Venezuela. Brent futures increased by 0.7%, reaching $60.08 per barrel, while U.S. West Texas Intermediate crude futures saw a rise of 0.8%, settling at $56.24 per barrel. On Tuesday, Trump declared a blockade aimed at tankers transporting Venezuelan oil that are already subject to U.S. sanctions, intensifying pressure on President Nicolas Maduro’s administration and heightening concerns regarding potential further disruptions to exports from the OPEC member. The critical inquiries are, firstly, the effectiveness of this blockade, and secondly, its duration. “This will be important in determining the impact on the oil market,” analysts noted. Nevertheless, crude prices remain poised to register weekly declines nearing 2%, influenced by an impending surplus and the potential for a peace accord in Ukraine, which are exerting pressure on the market. The U.S. crude contract has declined approximately 21% this year, marking its most significant downturn since 2018, whereas Brent has decreased by just under 20%, reflecting its poorest performance since 2020.