Stocks may move to the upside in early trading on Wednesday, regaining ground following the pullback seen in the previous session. The major index futures are currently pointing to a modestly higher open for the markets, with the S&P 500 futures up by 0.2 percent.
The futures edged higher after the Labor Department released closely watched consumer price inflation data that came in line with economist estimates.
The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations.
The report also said the annual rate of consumer price growth accelerated to 2.6 percent in October from 2.4 percent in September. The faster growth also came in line with economist estimates.
Excluding food and energy prices, core consumer prices climbed by 0.3 percent in October, matching the increases seen in each of the two previous months along with expectations.
The annual rate of core consumer price growth was unchanged from the previous month at 3.3 percent, which also in line with estimates.
The data matching expectations may lead to renewed confidence the Federal Reserve will continue lowering interest rates next month.
CME Group’s FedWatch Tool is currently indicating a 72.0 percent chance of another quarter point rate cut and a 28.0 percent chance rates will be left unchanged.
A pullback by treasury yields in reaction to the data may also generate buying interest, with the yield on the benchmark ten-year note giving back ground after reaching its highest closing level in four months on Tuesday.
Following the strong upward move seen in reaction to last week’s last elections, stocks gave back ground during trading on Tuesday. The major averages fluctuated over the course of the trading session before eventually closing in negative territory.
The Dow underperformed its counterparts, slumping 382.15 points or 0.9 percent to 43,910.98. The S&P 500 dipped 17.36 points or 0.3 percent to 5,983.99 and the tech-heavy Nasdaq edged down 17.36 points or 0.1 percent to 19,281.40.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan’s Nikkei 225 Index tumbled by 1.7 percent, while Hong Kong’s Hang Seng Index edged down by 0.1 percent.
The major European markets have also moved to the downside on the day. While the German DAX Index is down by 0.6 percent, the French CAC 40 Index is down by 0.5 percent and the U.K.’s FTSE 100 Index is down by 0.2 percent.
In commodities trading, crude oil futures are rising $0.38 to $68.50 a barrel after inching up $0.08 to $68.12 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,619.40, up $13.10 compared to the previous session’s close of $2,606.30. On Tuesday, gold fell $11.40.
On the currency front, the U.S. dollar is trading at 154.52 yen compared to the 154.61 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0636 compared to yesterday’s $1.0623.
Business News
U.S. Stocks May Move Back To The Upside Following Inflation Data
2024-11-13 13:52:15
