US equity-index futures slipped and Treasury yields ticked higher ahead of economic data that will help set the path for Federal Reserve policy.

Reports on economic growth and weekly unemployment claims are on traders’ radar Thursday before tomorrow’s key inflation figures, after Fed Governor Michelle Bowman yesterday tempered market expectations for interest rate cuts. A gauge of the dollar hovered near an eight-month high.

“It’s all about the Fed - higher for longer is keeping the front end of rates very high, drawing money into the US and keeping the dollar strong,” said Andrew Brenner, head of international fixed income at NatAlliance Securities LLC.

Micron Technology Inc.’s disappointing sales outlook highlighted the risks of relying on artificial intelligence chip makers to fuel the stock rally. The AI chipmaker’s shares slumped in premarket trading, dragging down a number of mega-tech peers including Nvidia Corp.

Europe’s stock benchmark was little changed, with traders in holding mode ahead of Sunday’s French elections. Fashion retailer Hennes & Mauritz AB slumped more than 14% after an earnings miss. GSK Plc fell after US health officials delivered a fresh regulatory blow to its blockbuster RSV vaccine. Gucci owner Kering gained after a double-upgrade from Bank of America Corp.

Stocks in Japan, Hong Kong, South Korea and China all declined, putting the MSCI Asia Pacific gauge on course for its first loss in three days. The yen pared some of the declines it made Wednesday when it tumbled to 160.87 per dollar, the weakest level since 1986.

MSCI Inc.’s key gauge for Chinese stocks is on course for a technical correction as traders struggle to find catalysts ahead of a July meeting of the nation’s top leaders. The MSCI China Index dropped as much as 2% on Thursday, taking declines from a May 20 high to about 10%.

In commodities, gold steadied after a two-day decline, while oil traded in a narrow range ahead of the next round of US economic data. Iron ore held a two-day gain, supported by signs that Chinese demand may pick up after property measures took effect across the country’s mega cities. 

  - Bloomberg