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Dow and S&P 500 futures steady ahead of CPI, Nasdaq-100 higher
Investors are bracing for July CPI, with expectations for 3.4% annual inflation and a 0.1% month over month print, which could shift rate expectations for September.
US stock index futures were little changed on Wednesday as investors prepared for fresh Consumer Price Index data that could influence the Federal Reserve’s interest rate outlook, according to Yahoo Finance.
Futures tied to the Dow Jones Industrial Average traded flat, while S&P 500 futures were up 0.2%. Nasdaq-100 contracts rose 0.6% in a relatively quiet week beyond the tail end of earnings season.
Economists expect the CPI to cool to a 3.4% annual increase in July from 3.5% in June, with prices up 0.1% month over month. A hotter print could strengthen the case for a September rate hike, while evidence of further easing could give the Fed room to hold rates steady, with traders pricing roughly a 50-50 chance of a hike at that meeting.
The inflation backdrop has also supported higher bond yields, with the US 30-year Treasury yield at 5.24% and South Korea’s 30-year government bond yield climbing to a record. Ongoing Middle East tensions tied to negotiations over the Strait of Hormuz have helped keep pressure on inflation and yields, and Brent crude futures were near $90 per barrel, while several companies are set to report earnings including Cisco Systems and Coherent Corp.
Latest closeWTI crude $83.42 ▲1.6%|Brent $89.26 ▲1.8%|S&P 500 7,728.20 ▼0.3%