Futures Point Lower
U.S. stock futures indicate a lower open on Wednesday as traders brace for the release of key inflation data and process the fallout from the heated debate between presidential candidates Kamala Harris and Donald Trump.
Dow Jones Industrial Average Futures: Down 158 points, or 0.4%
S&P 500 Futures: Down 0.3%
Nasdaq Futures: Down 0.4%
Key Economic Indicator: CPI Report
The primary focus for markets today is the upcoming consumer price index (CPI) report. Economists surveyed by FactSet predict a 2.6% year-over-year increase in the CPI for August, a decrease from the 2.9% rise recorded in July. If the report confirms easing inflation in line with expectations, it could solidify the anticipation of a quarter-point interest rate cut by the Federal Reserve. Early Wednesday, the yield on the 10-year Treasury note was at 3.618%, a slight decline from the previous day.
Debate Impact
Markets are also reflecting on the debate between Kamala Harris and Donald Trump, held late Tuesday. According to ING analyst Francesco Pesole, markets appear to favor Harris in this debate, which has influenced foreign exchange markets. A Trump victory typically correlates with a stronger dollar; however, the dollar is currently trading lower across the board.
Futures Performance
E-Mini Dow (YM00): $40,628.00, down $170.00, or 0.42%
E-Mini S&P 500 (ES00): $5,485.00, down $19.00, or 0.35%
E-Mini Nasdaq 100 (NQ00): $18,793.75, down $70.25, or 0.37%
Market Outlook
With traders awaiting the CPI report, attention is on how inflation trends might influence the Federal Reserve’s policy decisions. Additionally, the market is absorbing the implications of the debate, which could shape future economic policies and investor sentiment.
