Hot Inflation Data Damps Fed Rate Cut Hopes; Earnings Season Ramps Up

Hotter than expected inflation data has led to expectations of fewer Fed rate cuts this year. Goldman Sachs and UBS have pushed back forecasts for the first cut to July and September respectively.

U.S. stock futures little changed ahead of PPI data release. Investors awaiting further inflation data after Wednesday's hot CPI reading.

ECB holds rate meeting. Expected to keep rates unchanged but press conference will be watched for signals of possible June rate cut.

Earnings season kicks into high gear with banks reporting Friday. Analysts expect 5% earnings growth in Q1, lowest since Q2 2023. Early results from Delta, Wells Fargo encouraging.

Oil prices edge higher on ongoing Middle East tensions. Fresh Israel-Hamas negotiations but doubts over deal. Risk that conflict draws in Iran, 3rd largest OPEC producer. EIA data showed larger than expected build in U.S. stockpiles.