US stock futures inch lower with CPI data, Harris-Trump debate on tap

Source Investing

Investing.com-- U.S. stock index futures fell slightly in evening deals on Tuesday as focus turned squarely towards an upcoming inflation print that is likely to factor into the outlook for interest rate cuts. 

Focus was also on the first debate between Vice President Kamala Harris and former President Donald Trump, who are set for a hotly contested 2024 presidential election. The debate is set to take place later on Tuesday evening. 

Wall Street indexes were sitting on some gains over the past two sessions after uncertainty over the economy and interest rates sparked steep losses through the prior week. 

S&P 500 Futures fell 0.1% to 5,500.50 points, while Nasdaq 100 Futures fell 0.1% to 18,850.50 points by 19:11 ET (23:11 GMT). Dow Jones Futures fell slightly to 40,782.0 points. 

CPI data awaited for more rate cut cues 

Focus now turns to a consumer price index inflation reading, due Wednesday, for more cues on interest rates. 

The reading is expected to show inflation eased further, albeit slightly in August, potentially giving the Federal Reserve more confidence to cut interest rates this year. 

Wednesday’s CPI reading comes just a week before a Fed meeting, where the central bank is expected to cut interest rates by at least 25 basis points. 

Uncertainty over September’s cut was a key weight on stock markets through the past week, as signs of resilience in the U.S. economy saw traders trim expectations for a bigger, 50 bps cut in September. 

Traders are pricing in a 70% chance the Fed will cut rates by 25 basis points, and a 30% chance of a 50 bps cut, CME Fedwatch showed.

Wall St buoyed by tech while financials, energy stumble 

Gains in technology stocks- amid some bargain buying and accumulation in the sector- helped most Wall Street indexes log a stronger close on Tuesday, although overall gains were still limited by losses in banks and energy stocks.

Oracle Corporation (NYSE:ORCL) helped spur gains in technology stocks after the firm clocked stronger-than-expected earnings and also announced a cloud partnership with Amazon.com Inc (NASDAQ:AMZN).

Major bank stocks steadied in aftermarket trade after clocking deep losses during the session, as JPMorgan Chase&Co (NYSE:JPM) issued a net interest income warning on the prospect of lower interest rates.

Energy stocks were battered by oil prices sinking to an over three-year low on concerns over slowing demand.

The S&P 500 rose 0.5% to 5,495.52 points, while the NASDAQ Composite rose 0.8% to 17,025.79 points. The Dow Jones Industrial Average lagged, falling 0.2% to 40,736.96 points. 

Harris-Trump debate awaited 

Markets were also awaiting the first presidential debate between Harris and Trump, which is set to begin later on Tuesday. 

Recent polls showed the candidates locked into a tightly contested race for the White House, with less than two months left to the ballot. 

The debate is set to begin at 21:00 ET (03:00 GMT).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonightThe dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
Author  Suzie
Sep 22, Tue
The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anywayMicron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
Author  Irene Q.
Sep 23, Wed
Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.
placeholder
Gold Price Forecast: XAU/USD drifts toward $4.300 with bears gaining tractionGold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.
Author  FXStreet
Sep 23, Wed
Gold (XAU/USD) retraces Tuesday’s gains on Wednesday and drifts lower, approaching the $4,300 area as the US Dollar Index (DXY) rallies further amid high US Treasury yields.
placeholder
US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth storyUS September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
Author  Suzie
Yesterday 06: 46
US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
goTop
quote