Stock futures flat as S&P 500 and Nasdaq set records. Investors eye inflation data and Fed policy shift. Here's what we're watching.

In one of the more surprising developments of the current trading environment, U.S. stocks remained near record highs on Thursday despite a sharper-than-expected increase in producer prices and a weakening labor market that is pointing to slowing economic growth.

U.S. stock futures were rising early Wednesday after indexes reached new highs on the back of encouraging inflation data, firming up bets on a September rate cut from the Federal Reserve. Dow Jones Industrial Average futures were up 97n points,

The benchmark S&P 500 and Nasdaq hovered near record highs on Wednesday, but the market reflected weakness in some technology stocks after the previous day's strong gains on hopes that the Federal Reserve was getting close to a monetary easing cycle.