Sunday, October 1, 2023

Futures fall as rising oil adds to jitters ahead of inflation data -September 13, 2023 at 11:51 am

US stock index futures were lower on Wednesday as investors avoided placing big bets ahead of a key inflation reading that could shed light on the outlook for inflation, complicated by rising oil prices, oil, and its effect on interest rates.

The recent rebound in energy prices is expected to push headline inflation higher in August, which, combined with Oracle shares falling after a weak forecast, led to a weak session for Wall Street. on Tuesday.

Oil prices remain near 10-month highs.

Data from the Labor Department, due for release at 8:30 am ET, is expected to show the core Consumer Price Index eased to 4.3% year-over-year in August from 4.7%. However, headline inflation is expected to rise to 3.6%.

“There is every indication that rising oil costs will influence the headline inflation impression. Any increase in core data can really make the markets nervous because of the potential implications for interest rates,” Tim said. Waterer. , chief market analyst at KCM Trade.

“If inflation takes a step higher, it will highlight the challenge facing not only the Federal Reserve, but central banks around the world, that inflation will rear its ugly head again in inappropriate times.”

Interest rate traders see a 93% chance the Fed will hold rates in September, but more than a 50% chance of a hold in November and December, according to CME’s FedWatch tool. The Fed is likely to cut rates only between April and June next year, according to a Reuters poll.

Investors will also be keeping a close eye on August producer prices and retail sales data on Thursday ahead of the outcome of the Fed’s policy decision on September 20.

At 4:56 am ET, the Dow e-minis were down 34 points, or 0.1%, the S&P 500 e-minis were down 4 points, or 0.09%, and the Nasdaq e-minis 100 lost 11.5 points, or 0.08 %.

Among stocks, Apple was little changed in premarket trading. Shares closed up 1.7% after the company unveiled new iPhone models on Tuesday.

Ford gained 1.8% on plans to double production of the F-150 hybrid pickup by 2024, while General Motors rose 1.1% after UBS initiated coverage with a “buy” rating.

US-listed shares of Chinese electric vehicle makers Li Auto, Nio and Xpeng fell between 1.7% and 3.1% after the European Commission launched an investigation into whether to impose tariffs on their vehicles.

Nation World News Desk
Nation World News Desk
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