US stock futures showed minimal movement on Wednesday morning as investors awaited the release of November’s Consumer Price Index (CPI) report, a key measure of inflation that could influence Federal Reserve policy decisions next week, CNBC reports.
Futures linked to the Dow Jones Industrial Average dipped 64 points, or 0.2%, while S&P 500 and Nasdaq 100 futures edged up by 0.1% and 0.2%, respectively.
The CPI, which tracks the price changes of a broad range of goods and services, is expected to have risen 0.3% in November compared to the previous month and 2.7% on an annual basis, according to economists surveyed by Dow Jones. Excluding volatile food and energy prices, “core” CPI is also forecast to rise 0.3% month-over-month and 3.3% year-over-year.
These figures are being closely watched as they could provide insight into the Federal Reserve’s next policy moves. The central bank’s Federal Open Market Committee is set to meet next week, and traders are currently betting on an 86% chance of an interest rate cut, according to CME Group’s FedWatch Tool.
The CPI data will be followed later this week by the Producer Price Index (PPI), which tracks wholesale price changes. Together, these reports are among the last major data points before the Fed’s upcoming policy decision.
Tuesday’s market session ended with losses for major indexes. The S&P 500 and Nasdaq Composite each posted their second straight day of declines, while the Dow Jones fell for a fourth consecutive session.
Ross Mayfield, an investment strategist at Baird, described the market as being in “waiting mode” ahead of the CPI release.
“Even though we think we’re still in a bull market, there obviously needs to be periods of consolidation to kind of catch your breath,” he noted.
Mayfield suggested that investors may be hesitant to make big moves before key inflation data is revealed.
On the corporate front, investors will be watching for Adobe’s earnings report, which is due after the market close on Wednesday. Meanwhile, several stocks made notable premarket moves:
- Macy’s shares dropped 10% after the department store chain lowered its full-year profit forecast, citing increased costs and tighter consumer spending.
- GE Vernova, the energy equipment subsidiary of General Electric, fell 2.4% after issuing weaker-than-expected revenue guidance for 2024 and 2025.
- Dave & Buster’s tumbled over 14% following disappointing third-quarter results and the resignation of its CEO.
- C3.ai, a provider of enterprise AI software, saw its shares fall 5% after JPMorgan downgraded the stock, citing concerns over its valuation.
European markets opened slightly lower on Wednesday, with the pan-European Stoxx 600 index down 0.2%. In Asia, South Korea’s Kospi jumped 1.02%, defying mixed performance across other major markets in the region.
As the day progresses, investors will also keep an eye on the release of monthly federal budget data in the US, as well as any new developments related to the Federal Reserve’s policy stance.
