On Wednesday night, U.S. stock futures saw little change as investors awaited the release of September’s consumer price index report. Futures tied to the Dow Jones Industrial Average were flat, while S&P 500 futures edged lower by 0.03% and Nasdaq 100 futures fell 0.04%. The previous session had seen both the S&P 500 and Dow closing at record highs, with the S&P 500 rising 0.71% and the Dow jumping over 400 points, or 1%. Big technology stocks were among the notable gainers, propelling the Nasdaq Composite to a 0.6% advance.
Investors are eagerly anticipating September’s CPI report, scheduled for release on Thursday morning. This report will provide further insight into the current trajectory of inflation. Economists surveyed by Dow Jones are expecting a 0.1% increase on a monthly basis, as well as a 2.3% advance over the previous 12 months. The outcome of the report will also impact the Federal Reserve’s upcoming policy decisions at its November meeting. Data from Fed funds futures trading suggests a 70% likelihood of a quarter-point cut, according to CME Group’s FedWatch tool.
Stephanie Roth, chief economist at Wolfe Research, believes that a 50 basis point cut is unlikely at this point. The focus now is on whether the Fed will opt for a 25 basis point rate reduction or maintain the current stance at the November meeting. Roth expressed her expectation on Wednesday’s “Power Lunch” that the Fed will proceed with a rate cut. She pointed to the importance of Thursday’s CPI report in supporting this decision, particularly if core CPI, which excludes food and energy prices, comes in at 0.3% as predicted by economists surveyed by Dow Jones.
In addition to the CPI report, other economic data expected on Thursday morning includes the release of weekly initial jobless claims. Wall Street will also be closely watching Delta Air Lines’ quarterly earnings announcement on Thursday before the market open. These earnings reports and economic data releases will offer further insights into the state of the economy and potential market movements in the near future. As investors navigate the current economic landscape and await key data releases, market volatility and uncertainty remain key factors influencing trading decisions.
