U.S. stock index futures fell Thursday, handing back some of the week’s hefty gains, as investors digested fresh inflation and retail sales data and a slowing flow of corporate earnings.
At 08:50 ET (12:50 GMT), Dow Jones Futures fell 145 points, or 0.3%, S&P 500 Futures dropped 23 points, or 0.4% and Nasdaq 100 Futures slipped 115 points, or 0.5%.
The main Wall Street indices saw a mixed session on Wall Street, but are on course for strong gains this week, mainly boosted by optimism over a U.S.-China trade deal.
The Dow Jones Industrial Average is on track for gains of almost 2% this week so far, the S&P 500 index is up 4.1% and the NASDAQ Composite a substantial 6.8% higher.
PPI inflation, retail sales slump
With the trade turmoil seemingly settling down, investors are turning their attention to the economic data slate, looking for signs of damage being done to the world’s largest economy.
The latest producer price index showed that factory gate prices slumped on a monthly basis in April, in the latest sign of cooling inflationary pressures.
The producer price index for final demand fell 0.5% in April, the first monthly fall since 2023, after the previous month’s figure was revised to flat from a fall of 0.4%.
Taking out more volatile items like fuel and food, so-called “core” PPI also fell on a monthly basis, down 0.4%.
Data released earlier this week showed that the more widely-watched consumer price index grew by 2.3% in the 12 months to April, compared with expectations that it would match March’s pace of 2.4%. 
It was the lowest annual rate of inflation since February 2021, shortly before pent-up pandemic-fueled demand and supply constraints led to soaring prices.
Additionally, retail sales fell 1.0% on the month in March, a more substantial loss than the 0.5% expected.
A surge of buying before the implementation of Trump’s punishing tariffs led to the largest increase in the metric in more than two years in March. Separate surveys have indicated that households have widely been anticipating that the levies will push up prices.
Elsewhere, Federal Reserve Chair Jerome Powell is set to deliver remarks at a conference in Washington, D.C. Last week, the Fed left interest rates unchanged, with Powell noting strength in the broader economy but rising risks from inflation and unemployment.
Walmart impresses in Q1
The main corporate release Thursday comes from retail giant Walmart (NYSE:WMT), with the retail giant posting better-than-anticipated first-quarter earnings, although its finance chief warned that tariff tensions could soon drive prices higher..
Known for its low prices and massive selections, Walmart has become something of a bellwether for shopper sentiment. In February, the company issued downbeat guidance for the year, although CFO John David Rainey said American consumers remain "resilient" and focused on value.
Elsewhere, Chinese e-commerce titan Alibaba (NYSE:BABA) missed earnings expectations for its fiscal fourth quarter on both the top and bottom line, while agricultural equipment manufacturer Deere & Company (NYSE:DE) reported better-than-expected second quarter results, but lowered the bottom end of its full-year net income forecast range amid challenging market conditions.
Cisco Systems (NASDAQ:CSCO) raised its annual results forecast, betting on steady demand from cloud customers for its networking equipment, driven by the artificial intelligence boom.
UnitedHealth (NYSE:UNH) stock slumped in premarket trading after the Wall Street Journal reported the company was being investigated by the Department of Justice over alleged criminal fraud involving Medicare.
The investigation marks a new headwind for UnitedHealth, which is already nursing a sharp selldown in its shares this year on concerns over government scrutiny, weakening financials, and signs of internal strife. The company abruptly replaced its CEO this week.
Foot Locker (NYSE:FL) stock soared premarket after Dick’s Sporting Goods (F:DKS) confirmed it is exploring a deal to buy the company for roughly $2.3 billion.
Crude slumped on Iran nuclear deal talk
Oil prices fell sharply Thursday, extending recent losses, as the growing expectations for a potential U.S.-Iran nuclear deal added to demand concerns following a surprise build in U.S. inventories.
At 08:50 ET, Brent futures dropped 2.8% to $64.25 a barrel, and U.S. West Texas Intermediate crude futures fell 2.9% to $61.30 a barrel.
Both benchmarks lost just under 1% on Wednesday, ending a four-day rally and slipping from the two-week high reached earlier this week.
A U.S.-Iran nuclear deal could potentially allow Tehran to export more of its crude into the world market, loosening the global crude supply-demand balance.
Additionally, data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels in the week ended May 9, suggesting that demand may be cooling in the world’s largest energy consumer.