U.S. stock futures moved modestly higher on Thursday as investors looked ahead to another important inflation reading while assessing a fresh round of technology earnings. Cisco Systems (NASDAQ:CSCO) slipped in after-hours trading despite posting strong results fuelled by artificial intelligence demand, while semiconductor equipment maker Applied Materials (NASDAQ:AMAT) is scheduled to report after the closing bell. Geopolitical uncertainty also remains firmly in focus as the U.S. and Iran offer competing claims over control of the Strait of Hormuz amid stalled negotiations over reopening the strategically important waterway.
Futures tracking Wall Street's major indices were slightly positive on Thursday as markets continued to digest July's inflation figures and recent technology-sector earnings. By 02:58 ET ( ), Dow futures were up 26 points, or 0.1%, while S&P 500 futures gained 6 points, also 0.1%. Nasdaq 100 futures advanced 29 points, equivalent to a 0.1% rise.
Wednesday's regular session produced a mixed performance across the major U.S. averages. The S&P 500 and technology-focused Nasdaq Composite finished higher, while the Dow Jones Industrial Average recorded a marginal decline. Investor attention centred on data showing that annual U.S. consumer inflation slowed slightly last month, broadly matching forecasts, although the overall rate remained elevated.
The figures strengthened expectations that the Federal Reserve will leave interest rates unchanged at its September meeting rather than raise borrowing costs further to tackle inflation. Treasury yields moved lower following the inflation release, while the U.S. dollar weakened against a basket of major currencies. Cisco Systems shares moved lower in extended trading on Wednesday despite the networking equipment company delivering a strong set of quarterly figures.
Analysts cited by noted that investor expectations had become particularly demanding ahead of the results. Cisco shares have climbed more than 60% this year as the company benefits from surging demand for networking equipment required to support artificial intelligence infrastructure. Chief Executive Chuck Robbins told the Wall Street Journal that Cisco had not experienced such broad-based demand across its portfolio for three decades.
The company has secured billions of dollars in orders from major technology groups that are investing heavily in expanding their AI capabilities. Robbins described the AI boom as the "fastest-moving technology transition" Cisco has ever experienced, according to the WSJ. Cisco reported July-quarter profit of $3.86 billion, equivalent to $0.97 per share.
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