Nasdaq Futures Rise as Oil Falls on Ukraine Peace Hopes

Nasdaq futures climbed 0.4% as investors balanced a surprise surge in US inflation with optimism over potential Ukraine-Russia peace talks initiated by Donald Trump. Oil prices dropped over 3% amid hopes that an end to sanctions on Russian crude could increase supply. Meanwhile, the euro strengthened 0.5% to $1.0431, and markets anticipate three ECB rate cuts versus just one for the Fed this year.

Equities

The FTSE 100 rose 0.3% on Wednesday, marking its third consecutive session of gains and reaching another record high. AstraZeneca helped lift the index, gaining 1.5% after Morgan Stanley began coverage of the stock with an ‘overweight’ rating. Prudential climbed 5.8% as it announced plans to evaluate the listing of India’s ICICI Prudential Asset Management, potentially selling a portion of its stake.

The housebuilding sector also performed well, with Barratt Redrow up 5.3% after issuing a positive profit forecast and announcing a share buyback. The oil and gas sector added 0.5% after Shell projected strong growth in liquefied natural gas demand in the coming years. However, mining stocks struggled, with industrial metal miners falling 0.4% as aluminium prices slipped.

The FTSE 250 dipped 0.2%, weighed down by a weak performance across mid-sized stocks. Despite this, TBC Bank surged 8.5% after the Georgian lender announced a higher dividend payout.

In the US, the S&P 500 fell 0.27% as hotter-than-expected inflation data cast doubt on the likelihood of further interest rate cuts from the Federal Reserve. The Nasdaq managed to stay just in positive territory, rising 0.03%, while the Dow Jones dropped 0.5%. Treasury yields climbed as investors reassessed expectations for monetary policy.

Several US companies saw significant share price movements. CVS Health jumped 15% after reporting stronger-than-expected quarterly earnings, signalling improved financial performance under new CEO David Joyner. Gilead Sciences climbed 7.5% following an earnings forecast for 2025 that exceeded analyst expectations.

Nvidia and Amazon each fell more than 1%, pulling the S&P 500 lower as concerns around inflation and interest rates weighed on high-growth technology stocks. Lyft declined 8% after the ride-hailing firm forecast weaker-than-expected gross bookings for the first quarter.

Robinhood Markets gained 5% after the trading platform reported revenue above analyst estimates, fuelled by a rise in trading activity following Donald Trump’s election victory in November.

Forex & Commodities

The US dollar rose against the Japanese yen, gaining 1.29% to 154.44 yen, after US inflation data came in higher than expected. The dollar index reached a one-week high of 108.52 before easing slightly. The euro increased 0.27% to $1.0388 following comments from Bundesbank President Joachim Nagel, who said the European Central Bank should cut interest rates gradually.

Gold rose 0.5% to $2,918 per ounce, moving closer to its record high of $2,942.70 set on Tuesday. US gold futures climbed 0.6% to $2,945.40 as investors reacted to Donald Trump’s announcement of new tariffs, which could add to inflationary pressures. Silver added 0.5% to $32.37 per ounce, while platinum and palladium increased 0.7% and 1.2%, respectively.

Brent crude fell 1.1% to $74.37 per barrel, while West Texas Intermediate dropped 1.1% to $70.56. Oil prices declined after Trump indicated that peace talks between Russia and Ukraine could lead to the removal of sanctions on Russian crude. US crude inventories increased by 4.1 million barrels last week, exceeding expectations of a 3-million-barrel rise.