Futures slip as markets await inflation data for clues on Fed's rate path
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Futures down: Dow 0.14%, S&P 500 0.14%, Nasdaq 0.13%
Nov 13 (Reuters) -U.S. stock index futures edged lower on Wednesday as an uptick in Treasury yields weighed on rate-sensitive equities ahead of crucial inflation data that will offer more signals on the pace of the Federal Reserve's interest rate reductions.
All the three major Wall Street indexes closed lower on Tuesday, as a strong rally following the U.S. elections lost some steam, while the benchmark U.S. 10-year Treasury yield US10YT=RR moved above the 4.4% level on expectations that President-elect Donald Trump's policies could exacerbate inflation.
With investors seeing about a 66% chance of a 25-basis point interest rate cut at the Fed's December meeting, according to CME FedWatch, October's consumer price index figures will be closely watched to see if inflationary pressures are easing.
Economists polled by Reuters see core inflation rising 0.3% and the headline number up 0.2% on a monthly basis. CPI data is due at 8:30 a.m. ET.
At 5:35 a.m. ET, Dow E-minis 1YMcv1 were down 60 points, or 0.14%, S&P 500 E-minis EScv1 were down 8.5 points, or 0.14%, and Nasdaq 100 E-minis NQcv1 were down 28.25 points, or 0.13%.
Most rate-sensitive megacap stocks were lower in premarket trading, with Meta Platforms META.O down 0.5% and Microsoft MSFT.O losing 0.4%.
EV maker Tesla TSLA.O, however, gained 2.6% after closing down 6.2% in the previous session.
Futures tracking rate-sensitive small cap companies RTYcv1 also edged down 0.1%.
Despite the last session's declines, Wall Street has been largely upbeat over the past few days, expecting Trump's pro-business stance and possible tax cuts to buoy corporate growth, even as some worries remain over higher tariffs and inflation.
The S&P 500 .SPX has gained about 3.5% since the close on Nov. 5, and is on track for year-to-date gains of more than 25%.
A Bank of America's monthly fund manager survey showed global investors see higher growth than they did before, as well as higher inflation, in the wake of the U.S. election results.
Spirit Airlines' SAVE.N shares plunged 64.4% after a report the U.S. carrier is preparing to file for bankruptcy protection, while the company said it is in talks with creditors.
EV maker Rivian RIVN.O soared 14.2% after Volkswagen VOWG_p.DE on Tuesday raised its investment in the company by 16% to $5.8 billion.
Amgen AMGN.O rose 3.2% after the company said there was no link between its experimental weight-loss drug and changes in bone mineral density, following data from an early-stage study that weighed on the stock in the prior session.
Fed officials Lorie Logan, Alberto Musalem and Jeffrey Schmid are scheduled to speak later in the day.
Rates and inflation https://tmsnrt.rs/3U8HdD2
Reporting by Lisa Mattackal in Bengaluru; Editing by Shounak Dasgupta
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
