U.S. Inflation Trends Stir Market Reactions Amid Tariff Concerns

U.S. stock futures rose and the dollar remained near two-week highs after January's inflation data matched expectations. Speculation grows over potential Federal Reserve rate cuts this year amid economic cooling. Market reactions are influenced by rising tariffs and global trade concerns.

U.S. stock futures experienced a slight increase and the dollar clung to near two-week highs following the release of January inflation data that aligned with expectations. The figures suggest potential Federal Reserve rate cuts this year as economic conditions show signs of cooling.

Inflation metrics showed a marginal decrease, with the PCE price index down to 2.5% and the core PCE measure falling to 2.6%. However, these levels remain above the Federal Reserve's target, contributing to continued market anxiety over the economic outlook.

Investor concerns are compounded by U.S. President Donald Trump's announcement of impending tariffs, sparking fears of escalating trade tensions worldwide. Subsequently, financial markets remained on edge, with global stocks hovering near recent lows.

(With inputs from agencies.)