Stock futures flat as S&P 500 and Nasdaq set records. Investors eye inflation data and Fed policy shift. Here's what we're watching.

In one of the more surprising developments of the current trading environment, U.S. stocks remained near record highs on Thursday despite a sharper-than-expected increase in producer prices and a weakening labor market that is pointing to slowing economic growth.

U.S. stock futures were rising early Wednesday after indexes reached new highs on the back of encouraging inflation data, firming up bets on a September rate cut from the Federal Reserve. Dow Jones Industrial Average futures were up 97n points,

All three major stock indexes finished higher on Wednesday, with the S&P 500 and Nasdaq Composite climbing to fresh records despite bouts of weakness, as traders boosted the chances of 2025 interest-rate cuts.

Signs that U.S. tariffs on imports have not fully filtered into headline consumer prices came as a relief for investors this week as they seek insight on the impact of trade uncertainty on the economy.