US futures indices showed mixed movement as traders evaluated inflation figures and upcoming corporate earnings.
September’s CPI exceeded expectations, boosting market probability of a hawkish Federal Reserve rate hike.
S&P 500 and Nasdaq declined during Wednesday’s regular trading, with tech shares leading the downturn.
Dow Jones futures rise by 0.46% to trade near 52,090 during European hours on Thursday. S&P 500 futures decline 0.33% to trade around 7,740, while Nasdaq 100 futures fall by 1.30% to near 29,780.
US stock futures posted mixed results as investors continued to evaluate the Federal Reserve’s (Fed) monetary policy outlook following stronger-than-expected inflation data. Market participants are now awaiting Thursday’s producer inflation report, alongside the latest retail sales figures and weekly jobless claims. On the corporate front, earnings reports are anticipated from major companies including Charles Schwab, US Bancorp, and Freeport-McMoRan.
The Bureau of Labor Statistics reported on Wednesday that the US Consumer Price Index climbed 0.6% month-over-month in September, bringing the 12-month headline rate to 3.7%. Both figures topped economists' forecasts of 0.6% and 3.6%, respectively. Meanwhile, core CPI, which strips out volatile food and energy costs, advanced 0.3% for the month and 2.6% on an annual basis, both exceeding market estimates of 0.2% and 2.5%.
This hotter-than-anticipated inflation report reinforced expectations of a potentially more hawkish Federal Reserve, bolstering arguments for an interest rate hike at the upcoming Federal Open Market Committee meeting on October 27–28. Following the release, futures traders raised the probability of a rate hike at the late-October meeting to approximately 31.6%, according to CME Group’s FedWatch tool.
During Wednesday’s regular US trading session, major indexes closed lower, with the S&P 500 falling 1.11% and the Nasdaq Composite dropping 1.88%. Technology stocks led the selloff, driven by growing investor concerns over AI-related investments.
AI jitters keep pressure on chip stocks and data centers
Analysts at Deutsche Bank note that equity sentiment remained fragile, with “AI concerns” continuing to weigh on the market. They highlight that “it wasn’t the best day for equities either, as AI concerns meant there was a fresh drag from chip stocks and data centers,” underscoring how renewed pressure in these segments added to the broader index’s downside bias.
Comments
Log in or sign up to join the conversation.