US stock futures inch up as robust data allays economic worries

By Twesha Dikshit and Purvi Agarwal

Feb 12 (Reuters) – U.S. stock index futures edged higher on Thursday, a day after strong jobs growth and a dip in the unemployment rate eased economic concerns, with investors focusing on a busy line-up of corporate earnings.

Traders dialed back bets on interest-rate cuts after the release of labor market data on Wednesday. At least one reduction is still expected in June, but chances of the U.S. Federal Reserve holding rates steady have risen to almost 40% from 24.8%, according to CME Group’s FedWatch tool.

Weekly U.S. jobless claims are scheduled to be released later in the day, setting the stage for the next big economic indicator — January’s Consumer Price Index inflation report on Friday.

“Despite the stronger-than-expected jobs report, evidence of easing inflation in the coming months should keep the Fed on track for further easing,” strategists at UBS Global Wealth Management said.

“Fed rate cuts in non-recessionary periods are supportive for equities, and this macro backdrop remains a key pillar of our positive outlook.”

Wall Street indexes ended on a muted note in the previous session as investor sentiment took a hit from the drop in rate-cut expectations.

At 07:07 a.m. ET, Dow E-minis rose 140 points, or 0.28%, S&P 500 E-minis gained 19.75 points, or 0.28%, and Nasdaq 100 E-minis were up 60 points, or 0.24%.

AI-driven disruption has weighed on companies, with markets quick to punish sectors they deem will face competition.

Software shares continued their slide on Wednesday after rebounding for three sessions, while brokerage firms posted losses.

Corporate earnings remained front and center, with Howmet Aerospace shares gaining 2.8% in premarket trading after the company forecast first-quarter profit above Wall Street expectations.

AppLovin shares dropped 6% following fourth-quarter results. The marketing platform has lost nearly a third of its value in the first six weeks of the year amid increasing competition.

Cisco shares fell 6.8% after the networking equipment provider posted quarterly adjusted gross margin below expectations.

Markets will also tune in to remarks from Bank of Dallas President Lorie Logan and Governor Stephen Miran on Thursday.

Meanwhile, the U.S. and China could extend their trade truce for up to a year, with President Donald Trump and his Chinese counterpart Xi Jinping expected to meet in Beijing in early April, according to a report from the South China Morning Post.

The U.S. House of Representatives narrowly backed a measure disapproving of tariffs on Canada, with lawmakers voting to terminate the use of a national emergency underpinning Trump’s punitive levies on Canadian goods.

In other movers, Applied Materials shares dropped 1.3% after the U.S. Department of Commerce announced a $252 million settlement with the firm for illegally exporting chipmaking equipment to China.

(Reporting by Twesha Dikshit and Purvi Agarwal in Bengaluru; Editing by Arun Koyyur and Shilpi Majumdar)