Nasdaq Forecast: NDX Extends Gains After Cooler PPI

U.S. producer prices fell 0.3% month-over-month in the latest reading, coming in below expectations and pushing year-over-year PPI down to 5.5%. Nasdaq futures climbed 0.68% immediately following the release as traders dialed back Federal Reserve rate hike bets.

The softer inflation print triggered sharp stock moves across tech and financials. ASML surged 3% after posting strong quarterly earnings, while IBM collapsed 25% on profit warnings. Morgan Stanley added 1.5% following record results, and BlackRock rose 4% on better-than-expected earnings.

The inflation relief comes with a caveat: oil prices have been climbing on escalating U.S.-Iran tensions, threatening to reignite price pressures. The energy spike could complicate the Fed's path forward if it persists through upcoming data releases.

Nasdaq futures are extending recent gains as the cooler PPI reading reinforces trader expectations that peak inflation pressures are easing. The tech-heavy index remains sensitive to rate expectations, and any sustained move lower in producer prices strengthens the case for a less aggressive Fed stance ahead.