Following the mixed performance seen in the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a tenth of a percent.
Traders may be reluctant to make significant moves as they look ahead to the release of key U.S. inflation data in the comings days.
The Labor Department’s reports on consumer and producer price inflation, which are due to be released on Thursday and Friday, respectively, could have a significant impact on the outlook for interest rates.
With economists expecting the reports to show slowdowns in the annual rate of core price growth, the data could bolster optimism about near-term rate cuts by the Federal Reserve.
However, if the data surprises to the episode, it could add to recent skepticism about whether the Fed will begin cutting rates in March.
Later in the day, trading could be impacted by reaction to the results of the Treasury Department’s auction of $37 billion worth of ten-year notes.
The results of the auction could affect treasury yields, which have recently been a key driver of trading on Wall Street. The ten-year yield is moving moderately lower ahead of the release of the auction results.
Stocks moved mostly lower in early trading on Tuesday but regained ground over the course of the session. The major averages climbed well off their worst levels of the day, with the tech-heavy Nasdaq peeking above the unchanged line.
The major averages finished the day mixed. While the Nasdaq inched up 13.94 points or 0.1 percent to 14,857.71, the S&P 500 edged down 7.04 points or 0.2 percent to 4,756.50 and the Dow fell 157.85 points or 0.4 percent to 37,525.16.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Wednesday, although Japan’s Nikkei 225 Index bucked the downtrend and jumped by 2.0 percent. China’s Shanghai Composite Index fell by 0.5 percent, while Hong Kong’s Hang Seng Index slid by 0.6 percent.
Meanwhile, European stocks are little changed on the day. While the German DAX Index is up by 0.1 percent, the French CAC 40 Index is just below the unchanged line and the U.K.’s FTSE 100 Index is down by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.79 to $73.03 a barrel after jumping $1.47 to $72.24 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,037.60, up $4.60 compared to the previous session’s close of $2,033. On Tuesday, gold edged down $0.50.
On the currency front, the U.S. dollar is trading at 145.15 yen compared to the 144.48 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0949 compared to yesterday’s $1.0931.
Business News
U.S. Stocks May Lack Direction Ahead Of Inflation Data
2024-01-10 13:45:45
