U.S. stock futures were lower Wednesday as Wall Street awaited the latest consumer price index (CPI) data for insights on the pace of inflation. Futures tied to the Dow Jones Industrial Average slipped 68 points, or 0.1%. S&P 500 futures fell by 0.2%, and Nasdaq futures ticked down 0.1%.
The major averages fell during Tuesday’s session as the market took a breather from its post-election rally. The Dow fell around 382 points, or 0.9%. The S&P 500 declined 0.3%, while the tech-heavy Nasdaq inched down 0.1%.
Part of the market decline Tuesday is just a little bit of profit-taking based on the strong gains—especially post-election—and some of it may be positioning ahead of tomorrow’s inflation report and Friday’s retail sales report,” said Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management. Investors will be looking toward October’s CPI numbers, scheduled for release Wednesday morning, to see how much the costs of goods and services have risen. Economists expect the CPI to increase 0.2% for the month and 2.6% year over year.
The pace of price increases is a key component informing the Federal Reserve’s decision to cut or maintain interest rates. Other notable economic data releases later this week include the producer price index and retail sales numbers, which will be announced on Thursday and Friday, respectively. This is a busy week with consumer prices, producer prices, and retail sales.
All of which could signal that the economy remains strong,” said Scott Helfstein, head of investment at Global X ETFs. He added, “Ironically, markets may be less sensitive to data this week after the election and the Fed cut last week.
European stocks traded around the flatline Wednesday, with global markets focused on upcoming U.S. inflation data. Just Eat Takeaway stock soared 20% shortly after the open Wednesday after the company said it had struck a deal to sell its U.S. unit Grubhub to Wonder for $650 million.
RWE AG was also a best performer on the index, its shares rocketing 19.1% Wednesday morning after the German energy company upgraded its mid-term financial targets. ABN Amro traded 1% lower after the Dutch lender posted a 9% fall in quarterly net profit compared to a year earlier. Shares of Allianz were up 1.1% after the financial services group beat expectations with a 22% rise in third-quarter net profit.
U.S. stock futures were little changed Tuesday night. Futures tied to the Dow fell just 16 points, or 0.04%. S&P 500 futures ticked down 0.05%, and Nasdaq futures fell 0.09%.
Wall Street indexes closed lower as investors scrutinized the potential impact of President Donald Trump’s policies and upcoming economic data. On the companies side, Novavax saw a 6% drop after cutting its annual revenue forecast, while Honeywell jumped to a record high following the disclosure of Elliott Management’s stake. Tesla ended a five-day rally with a 6% decline.
At the close, the Dow Jones Industrial Average fell by 0.86%, the S&P 500 dipped 0.29%, and the Nasdaq Composite edged down 0.09%. This market reaction comes as traders brace for new economic data, including inflation figures that could influence the Federal Reserve’s future policy decisions. U.S. Treasury yields have been pushing higher, adding further uncertainty to market conditions.
The roaring rally in U.S. stocks lost steam on Tuesday as investors assessed whether buying has been overdone and speculated on the policy implications of President-elect Donald Trump’s Cabinet picks. The Dow Jones Industrial Average slid nearly 0.8%, or almost 350 points. The S&P 500 fell more than 0.2%, and the tech-heavy Nasdaq Composite was down roughly 0.1%, paring earlier losses.
Notably, Boeing was a laggard in the Dow, falling more than 2.5%, due to the impact of earlier worker strikes.
Stock futures drop amid cpi anticipation
Both the S&P 500 and Dow had their worst day since October 31.
The pause in equities came as Treasury yields ticked higher. The 10-year Treasury yield added approximately 12 basis points to hit around 4.43%. Wall Street analysts have signaled that the post-election surge in stocks could soon sputter after lifting the major indexes to record highs.
Investors have increased their exposure to U.S. stocks significantly. At the same time, the market is contemplating the policy impact of Trump’s likely Cabinet picks, which include high-profile China hawks. The prospect of tougher tariffs has sparked concerns that the next president’s economic plans could spur inflation.
Bitcoin’s record-breaking rally continued, putting the cryptocurrency within striking distance of $90,000 per coin. Investors will be watching overnight trading closely to see if it crosses this milestone. The recent rally in cryptocurrency-related stocks and companies like Tesla has cooled off.
Shares of Coinbase, which offers cryptocurrency trading on its platform, were down more than 2% after soaring about 74% in the past five trading sessions. Similarly, Robinhood, which also offers crypto trading, was down about 1% on Tuesday after a significant rally following Trump’s win. Tesla’s stock also slipped, falling more than 5% after previously rallying over 40% in the past five sessions.
Federal Reserve Bank of Minneapolis President Neel Kashkari indicated that a surprise increase in inflation data between now and the Fed’s December meeting could prompt the central bank to pause cutting interest rates. “It’d be hard to imagine the labor market really heating up between now and December,” Kashkari said. The first inflation reading from October is set to greet investors on Wednesday with the release of the Consumer Price Index (CPI).
Boeing’s stock declined as much as 3% on Tuesday after the company reported delivering just 14 commercial planes in October, largely due to the impact of a seven-week strike by its biggest union. The strike, which ended last week, cost Boeing an estimated billions in lost earnings and temporarily stalled its turnaround efforts. Bank of America CEO Brian Moynihan supported Federal Reserve Chairman Jerome Powell’s stance of keeping the central bank’s monetary policy decisions independent from presidential influence.
“At the end of the day, I think that our Federal Reserve as an independent central bank is a good place to be,” Moynihan said. All three of the major averages hovered near session lows just before 12:30 p.m. ET. The Dow Jones Industrial Average slid about 0.6%, or more than 250 points, while the S&P 500 fell about 0.4%, and the Nasdaq Composite slipped about 0.3%.
The move lower came as Treasury yields continued to climb. Snap’s stock fell about 4% on Tuesday following reports that President-elect Donald Trump is expected to try to halt a potential U.S. ban of TikTok next year. Snap, a direct competitor to TikTok in the social media space, had been seen as a potential beneficiary of a TikTok ban in the U.S.
Consumers’ inflation expectations continue to move lower.
A new October survey from the Federal Reserve Bank of New York showed consumers expect inflation at 2.9% in one year, down from 3% a year prior. This marked the lowest one-year outlook in four years and aligns with the University of Michigan’s consumer sentiment report, which revealed that expectation of inflation in a year is now at 2.6%. Rick Rieder, BlackRock’s chief investment officer of global fixed income, commented on the high trading multiples of the S&P 500.
“I don’t love the multiple,” Rieder said, referring to the S&P 500’s current trading at 22.2 times 2025 earnings estimates. Despite this, he remains “long equities,” noting continued demand for stocks through 401(k) flows and company buybacks. Overall, the stock market is dealing with mixed signals as investors assess various economic indicators and the potential implications of a new administration in the U.S.
