U.S. Stock Index Futures Show Little Movement Ahead of CPI Data

U.S. stock index futures remained relatively stable on Wednesday evening as investors prepared for upcoming consumer inflation data that could influence interest rate decisions.

Futures followed a positive day on Wall Street, where the Dow reached record highs after the Federal Reserve’s September meeting minutes revealed many policymakers supported a 50 basis point rate cut. However, the minutes also indicated no commitment to a specific pace of future cuts, leaving investors uncertain about the extent of rate reductions this year.

S&P 500 Futures were stable at 5,840.0 points, while Nasdaq 100 Futures were flat at 20,457.25 points by 19:17 ET (23:17 GMT). Dow Jones Futures remained unchanged at 42,830.0 points.

CPI Data Awaited for Rate Insights

Investors are now focused on the consumer price index (CPI) data expected on Thursday, which will provide further insights on inflation and interest rates. Expectations are for a slight decrease in CPI inflation, while core CPI is predicted to remain stable. Persistent inflation reduces the Fed’s motivation to expedite interest rate cuts.

Strong payroll data released last week diminished speculation for another 50 basis point cut in November. Traders are currently pricing a 75.5% chance of a 25 basis point cut and a 24.5% chance of holding rates steady.

Despite this, the robust labor market and enduring inflation indicate resilience in the U.S. economy, lessening recession prospects. This robustness supported Wall Street, with economically sensitive sectors benefitting.

The S&P 500 increased by 0.7% to 5,792.04 points on Wednesday, the Dow Jones Industrial Average jumped by 1% to a record closing high of 42,512.0 points, and the NASDAQ Composite rose by 0.6% to 18,291.82 points.

Q3 Earnings Season Approaches

This week also highlights the onset of the third-quarter earnings season, with major banks set to announce their results on Friday.

JPMorgan Chase & Co, Wells Fargo & Company, and Bank of New York Mellon are scheduled to report, while Goldman Sachs Group Inc, Bank of America Corp, and Citigroup Inc will follow next week. Earnings announcements from Johnson & Johnson, UnitedHealth Group, and Walgreens Boots Alliance Inc are also expected early next week.