U.S. Futures Dip as CPI Report Looms Over Wall Street

U.S. index futures fell on Thursday amid expectations that the upcoming Consumer Price Index report could influence future interest rate cuts, potentially disrupting Wall Street's record-breaking streak. Delta Airlines and airline stocks slumped due to weak forecasts, while megacap and semiconductor stocks helped lift indexes.

U.S. index futures slipped on Thursday as market participants braced for a pivotal Consumer Price Index (CPI) report. The data, due at 8:30 a.m. ET, is expected to shape expectations for future interest rate cuts and test Wall Street's record-breaking run.

Delta Air Lines saw its stock plummet 9.7% in premarket trading following a disappointing profit forecast, adversely impacting other airline stocks including United Airlines Holdings, American Airlines Group, and JetBlue Airways.

The S&P 500 and Nasdaq reached new highs on Wednesday. Analysts are optimistic that a favorable CPI report could cement expectations for two rate cuts by the Federal Reserve in the second half of the year. Economists predict a slight decline in annual inflation to 3.1% for June, down from 3.3% in May.