US stock futures held steady on Thursday as investors braced for a key inflation report that could cement expectations for a Federal Reserve interest rate cut in September. In extended trading, Costco Wholesale gained 2.5% after raising its membership fee, while WD-40 Company jumped 12.5% on strong quarterly results.

Market Performance

In regular trading on Wednesday, the S&P 500 and Nasdaq Composite rallied 1.02% and 1.18%, respectively, hitting new all-time highs. The Dow Jones also gained 1.09% to settle at a seven-week high.

Tech Stocks Leading the Charge

AI-related chip stocks led the market charge, with strong gains from:

Nvidia (2.7%)

AMD (3.9%)

Micron Technology (4%)

Other mega-cap tech names also advanced, including:

Apple (1.9%)

Microsoft (1.5%)

Alphabet (1.2%)

Federal Reserve's Position

In his appearance before the House, Federal Reserve Chair Jerome Powell stated that the central bank wouldn’t wait to cut rates until inflation hits 2%. He also noted that the US economy is "no longer overheated," signaling a potential shift in the Fed's monetary policy approach.

Investors' Focus

Investors are closely watching the upcoming inflation report, as it could provide crucial insights into the Fed's next moves. A lower-than-expected inflation reading could reinforce expectations for a rate cut, while a higher reading might delay such actions.

Key Stocks in Extended Trading

Costco Wholesale saw a 2.5% gain after announcing a raise in its membership fee, reflecting strong consumer demand and business growth.

WD-40 Company surged 12.5% on reporting strong quarterly results, showcasing the company's robust performance.

Implications for the Market

The steady performance of US stock futures and the rally in tech stocks underscore the market's optimism and resilience. The upcoming inflation report will be a critical factor in determining the future trajectory of the stock market and the broader economy.

Economic Context

The broader economic context, including signals from the Federal Reserve and global economic trends, will continue to influence market dynamics. The interplay between economic indicators and Fed policy decisions remains a focal point for investors.

Market Outlook

As the market anticipates the inflation report, the continued strength in tech stocks and the performance of major indices highlight investor confidence. The outcome of the inflation data will be crucial in shaping the market outlook for the coming months.

In summary, US stock futures remain steady ahead of a key inflation report that could influence the Federal Reserve's interest rate decisions. The tech sector leads the rally, with major indices hitting new highs, reflecting strong market sentiment and investor confidence.

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