U.S. stock futures are trading near flat on Wednesday morning as investors await the release of key inflation data. The Dow Jones futures dipped 64 points, or 0.2%, while the S&P 500 and Nasdaq 100 futures ticked higher by 0.1% and 0.2%, respectively. Market participants are eagerly anticipating November’s Consumer Price Index (CPI) data, which is due to be released in the morning.
Economists polled by Dow Jones expect the CPI to rise 0.3% from October and 2.7% compared with a year ago. The core CPI, which excludes volatile food and energy prices, is expected to increase 0.3% on the month and 3.3% over the past 12 months. This data comes ahead of the producer price index report expected later in the week, two of the last major economic releases before the Federal Reserve’s policy meeting next week.
Fed funds futures indicate that the central bank is likely to lower interest rates at the forthcoming meeting, according to CME’s FedWatch Tool. Ross Mayfield, investment strategist at Baird, noted that Tuesday’s market action showed cautious sentiment, marking the second straight down day for the Dow and the fourth negative session in a row for the Nasdaq composite. He commented that market participants might have “a little bit of concern” about potential inflation figures.
CPI report set to impact market
Adam Crisafulli of Vital Knowledge expressed confidence that a Fed rate cut next week is a sure thing. However, he expects the forward guidance to take a slightly hawkish pivot, with the Federal Reserve likely to “hold” rates at the 1/29 meeting, and possibly the 3/19 one as well.
European stocks opened slightly lower on Wednesday, with the pan-European Stoxx 600 index trading down 0.2% shortly after the opening bell. In Asia-Pacific markets, South Korea led gains while the overall trading was mixed. The blue-chip KOSPI jumped 1.02% and the small-cap Kosdaq rose 2.17%, buoyed by developments in a high-profile corruption investigation.
In contrast, Hong Kong’s Hang Seng Index reversed gains to trade 0.76% lower, and mainland China’s CSI 300 index closed down 0.17%. Major corporate moves after hours included General Motors, whose shares rose nearly 3% after announcing it would acquire self-driving car company Cruise. Meanwhile, energy equipment company Baker Hughes slid 3% after providing weaker-than-expected full-year revenue guidance for 2024 and 2025 fiscal years.
As investors await the crucial inflation data, the market remains cautious, with stock futures trading about 0.1% higher across the Dow, S&P 500, and Nasdaq 100. The upcoming CPI report and its potential impact on Federal Reserve policy will be closely watched by market participants.
