Stock Market

US futures slip as bleak Intel outlook chills techs


US stock futures retreated Friday after a gloomy outlook from Intel, as investors awaited a key inflation reading seen as influential in the timing of an interest rate cut.

S&P 500 (^GSPC) futures dropped 0.2% after a winning Thursday saw the benchmark close at another record high. Dow Jones Industrial Average (^DJI) futures also lost around 0.2%, while those on the tech-heavy Nasdaq 100 (^NDX) sank nearly 0.5%.

Techs led the way lower after Intel’s (INTC) first-quarter outlook fell well short of Wall Street expectations, somewhat denting the AI-fueled hopes that have helped lift stocks to record highs. Intel shares fell over 10% in premarket trading, with peers AMD (AMD) and Nvidia (NVDA) also taking a slight knock.

The release of the PCE index for December painted a rosy inflation picture for investors, however. “Core” PCE, the inflation gauge commonly known as the Fed’s preferred measure, fell below 3% on an annual basis, the slowest rate of growth since March 2021.

That number, combined with a hotter-than-expected early estimate on fourth quarter US GDP, could further the notion that the US economy is headed for a “soft landing.”

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

At the same time, investors will watch for the next batch of earnings for more insight into the health of Corporate America and the economy. Colgate-Palmolive (CL) is a highlight Friday, as is American Express (AXP), especially after payment card rival Visa (V) gave a tepid revenue-growth forecast.

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