Stock futures were only slightly changed on Thursday evening, with S&P 500 futures edging up by 0.02% and Nasdaq 100 futures remaining near the flatline. The Dow Jones Industrial Average futures added just one point. This came after a day of losses for the major averages, with the S&P 500 and the Dow pulling back from their record highs. The S&P 500 slipped 0.2%, the Dow lost about 0.1%, and the Nasdaq Composite saw a slight decline of 0.05%.
Investor concerns about inflation were raised by new data released on Thursday, showing that the consumer price index for September increased by 0.2% on a monthly basis and by 2.4% from a year earlier. This surpassed the expectations of economists, who had predicted a 0.1% monthly increase and a 2.3% year-over-year gain. Fed funds futures trading suggests an 87% likelihood that the Federal Reserve will lower interest rates by a quarter point in November. However, the Fed will continue to monitor additional data to determine their course of action on rates.
According to Preston Caldwell, senior U.S. economist at Morningstar, the data on inflation is not enough to deter the Fed from cutting rates in November. Additional strong economic data could potentially lead to a change in the timing of rate adjustments. The producer price index, a measure of wholesale prices, is expected to show a 0.1% increase in September on a monthly basis, according to economists polled by Dow Jones. Excluding food and energy costs, a 0.2% advance is forecasted.
Before the bell on Friday, JPMorgan Chase and Wells Fargo are set to report their quarterly earnings. These results could have an impact on the market for the day. The S&P 500 has gained 0.5% for the week so far, with the Dow up by 0.2% and the Nasdaq seeing the highest increase at 0.8%. In light of the ongoing uncertainty surrounding inflation and interest rates, investors will be closely watching the latest data and corporate earnings reports to determine their next steps in the market.
