US February PPI Accelerates, Middle East Tensions Escalate Further, Three Major US Stock Index Futures Fall Premarket

TradingKey - At 2:00 PM ET, the Federal Reserve will announce its latest interest rate decision. Keeping rates unchanged has become the market consensus, and sentiment has turned cautious. Pre-market inflation data added further variables. The U.S. February PPI rose 0.7% month-over-month, the largest increase since July 2025; the annual rate reached 3.4%, significantly higher than the market expectation of 2.9%.

Affected by the news, as of 9:20 AM ET, futures for the three major U.S. stock indices extended their weak performance and traded lower across the board.

The MG7 were under collective pressure in pre-market trading.

Strong upstream price data indicates that inflationary pressures remain resilient, posing upside risks for upcoming PCE data and potentially further dampening market expectations for interest rate cuts.

Meanwhile, the situation in the Middle East continues to unsettle the market. Iran reported that its energy facilities were attacked, raising risks of crude oil supply disruptions and keeping oil prices fluctuating at high levels. Rising energy prices could exacerbate inflation expectations, further complicating the policy environment.

Under the dual constraints of "stubborn inflation and slowing growth," how Powell balances his policy stance at the press conference will be the focal point of market attention.