Recession chatter is still making the rounds on Wall Street, but cooler inflation is quelling fears of a dire scenario for the Fed.

Wall Street, already on edge over the next tariff announcements from President Donald Trump, turned lower early Thursday ahead of the latest data on inflation and layoffs. Futures for the S&P 500 lost 0.

U.S. equity futures edged lower in early Thursday trading, while Treasury yields and the dollar bumped higher, as investors added the threat of a U.S. government shutdown to a growing list of concerns tied to the fate of the world's biggest economy.

The hope on Wall Street is that Trump is using the threat of tariffs as a tool for negotiations and that he’ll ultimately go through with policies that would mean less damage for the global economy and trade. Tariffs could raise prices on everyday items even more for U.S. households, when high inflation has proven to be stubborn to subdue fully.