OP Wire 2/12 (OP – Lite)

By Steve

U.S. stock futures remained subdued on Wednesday as traders braced for critical inflation data while closely monitoring President Trump’s latest tariff plans. With geopolitical tensions rising and uncertainty around interest rates, the market is navigating a complex landscape that could present significant opportunities for traders.

Futures Mixed as Fed Signals No Rush to Cut Rates

As of early morning trading, Dow futures slipped 30 points (-0.1%), S&P 500 futures were down 4 points (-0.1%), and Nasdaq 100 futures remained mostly flat. The cautious sentiment follows Federal Reserve Chair Jerome Powell’s remarks that the Fed is in no hurry to resume cutting interest rates. Powell cited continued strength in the U.S. economy, reinforcing the Fed’s data-driven approach to monetary policy.

With inflation data set for release, traders will be watching closely. Analysts expect:

Headline CPI to remain at 2.9% year-over-year and slow slightly to 0.3% from 0.4% month-over-month.
Core CPI (excluding food and energy) to slow to 3.1% from 3.2% annually but rise to 0.3% from 0.2% monthly.

A hotter-than-expected reading could delay rate cuts further, impacting sectors sensitive to borrowing costs.

Trump’s Tariff Plans Could Shake Up Markets

Reports indicate that President Trump’s advisers are finalizing sweeping reciprocal tariffs, marking another escalation in his protectionist trade agenda.

25% tariffs on all steel and aluminum imports have already drawn backlash from the EU, Canada, and Mexico.
Additional 10% tariffs on Chinese goods have triggered countermeasures from Beijing, which take effect this week.
25% tariffs on Mexico and Canada were postponed for a month following border security commitments.

For traders, this means increased volatility in industrials, manufacturing, and tech stocks exposed to supply chain disruptions.

Big Moves in Individual Stocks

Coca-Cola (KO) rose after posting better-than-expected Q4 revenue, benefiting from price hikes and increased sales volume.
Apple (AAPL) surged on reports of an AI partnership with Alibaba (BABA) for iPhones in China.
Tesla (TSLA) declined as reports surfaced that Elon Musk is leading a $97.4 billion takeover bid for OpenAI, which CEO Sam Altman strongly refuted.
Cisco (CSCO) will report earnings after the bell, with investors eyeing AI-driven demand for its networking gear.
CVS Health (CVS) and Robinhood (HOOD) are also set to release earnings as corporate reports for Q4 begin to wrap up.

Looking ahead, key earnings to watch include AMC (AMC), Walmart (WMT) next week, and Nvidia (NVDA) later this month.

Oil Slips After Inventory Surge

Crude oil prices declined Wednesday, breaking a three-day winning streak.

WTI crude fell 1.0% to $72.59 per barrel.
Brent crude dropped 0.9% to $76.33 per barrel.

A report from the American Petroleum Institute showed an unexpected 9 million barrel surge in U.S. crude inventories last week, weighing on prices.

AI Regulation Battle Heats Up

U.S. Vice President JD Vance warned that excessive EU AI regulations could stifle innovation, calling content moderation “authoritarian censorship.”
Microsoft (MSFT) and Anduril Industries expanded their partnership for the U.S. Army’s IVAS program, further integrating Microsoft Azure for AI workloads.
Disney (DIS) replaced “diversity and inclusion” as a standalone metric in executive pay, shifting to a broader “talent strategy” approach.

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