Traders work on the trading floor of the New York Stock Exchange on the afternoon of April 9, 2024 in New York City.
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Stock index futures edged higher on Wednesday morning as investors awaited key U.S. inflation data that will inform the Federal Reserve’s interest rate policy path.
Futures linked to the Dow Jones Industrial Average An increase of 23 points, or 0.06%. S&P 500 Index Futures The trading price increased by 0.07%, while Nasdaq 100 Futures up 0.12%.
In regular trading Tuesday, investors appeared to be holding ahead of the March CPI report. 30 stocks Dow Chemical fell 0.02%, while S&P 500 Index up 0.1%.this Nasdaq Index It rose slightly by 0.3%.
Economists surveyed by Dow Jones said the CPI report due to be released at 8:30 a.m. ET on Wednesday is expected to rise 0.3% month-on-month in March and 3.4% higher than 12 months ago. Economists expect core CPI, which excludes volatile food and energy prices, to rise 0.3% and 3.7% respectively.
Traders are looking to consumer price index data for clues on how central bank policymakers might adjust interest rates, with the results sure to influence market trends on Wednesday. According to federal funds futures trading data, the probability that the Fed will keep interest rates unchanged in June is 42% CME Group Fed Watch Tool.
Quincy Krosby, chief global strategist at LPL, said higher-than-expected inflation data could lead to a severe correction after the market’s rally this year, while cooler inflation data could cause U.S. Treasury yields to fall back And boost the stock market financial.
Crosby said: “The market is increasingly worried that inflation will remain more stubborn and may even fall into a downward trajectory.” “If the Fed continues to initiate an easing cycle without accelerating the downward trend in inflation, the market will be enveloped in the prospect of stagflation. Under the breath.”
In addition to Wednesday’s big inflation report, investors are also looking forward to the minutes from last month’s Federal Reserve meeting. They will be looking for clues on policymakers’ stance on expected rate cuts this year.
The first-quarter earnings season is about to kick off. Delta Airlines Results are scheduled to be announced before the market closes on Wednesday.
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