US stock index futures steady with CPI data in sight
Trending Articles- Gold Price Trend Forecast: Why Did Gold Prices Fall After US CPI Cooled? Fed Chair Speech and Iran Situation Become Obstacles
- Gold Price Trend Forecast: June CPI Plus Fed Chair Congressional Testimony, Can Gold Price Hold Above $4,000?
- TradingKey Daily Market Brief: Gold Falls Below $4,000, TSMC’s Strong Earnings Fail to Stop AI Trade Cooling, Chip Stocks Sold Off
- Gold slides back closer to $4,050 as Iran risks and Fed hike bets boost USD
- Gold Price Forecast: Cooling Inflation Fails to Offset Fed Hawkish Pressure, Gold Price May Fall to $3,500
- Today’s Market Recap: Unexpected PPI Drop Boosts Markets, Apple Hits All-Time High, AI Hardware Stocks Remain Under Pressure, Micron, SanDisk Slump
Investing.com-- U.S. stock index futures were flat in evening deals on Tuesday as investors hunkered down ahead of key consumer inflation data that is likely to factor into the outlook for interest rate cuts.
A softer-than-expected producer inflation reading sparked a rally on Wall Street, helping U.S. benchmarks reach levels seen before a severe rout last week. The prospect of softer inflation attracting deeper rate cuts was a major driver of stock gains.
S&P 500 Futures fell slightly to 5,45.25 points, while Nasdaq 100 Futures steadied at 19,107.75 points by 19:11 ET (23:11 GMT). Dow Jones Futures fell 0.1% to 39,869.0 points.
CPI data awaited for more rate cut cues
Focus was squarely on consumer price index inflation data, due on Wednesday.
The reading is expected to show inflation eased slightly in July, which, coupled with a soft producer price index print on Tuesday, is likely to set the stage for a deeper interest rate cut by the Federal Reserve in September.
Traders are split over a 25 and 50 basis point cut in September, CME Fedwatch showed. But bets on a 50 bps cut slightly increased, standing at a 53% chance, after Tuesday’s PPI reading.
The prospect of lower interest rates bodes well for stock markets, given that it frees up capital that can then be invested into the sector. Lower rates also help soothe concerns over slowing economic growth, after weak readings on the labor market sparked increased volatility on Wall Street.
Wall St at 2-week highs on rate cut hopes
Wall Street indexes surged on Tuesday, extending a rebound from last week’s volatility and coming close to two-week highs.
The S&P 500 rose 1.7% to 5,434.43 points, while the NASDAQ Composite rose 2.4% to 17,183.95 points on Tuesday. The Dow Jones Industrial Average rose 1% to 39,765.64 points.
Traders piled into discounted technology stocks, especially heavyweight internet and chipmaking firms, after some mixed earnings over the past three weeks sparked deep losses in the sector.
The prospect of lower rates also sparked buying into more economically sensitive sectors.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
