US stock futures slip slightly after record-high run; CPI awaited

U.S. stock index futures slipped slightly lower Tuesday, steadying ahead of the week's key inflation release, after Wall Street hit a series of record highs on optimism over Donald Trump’s election victory.

At 05:15 ET (10:15 GMT), Dow Jones Futures fell 70 points, or 0.2%, S&P 500 Futures dropped 10 points, or 0.2%, and Nasdaq 100 Futures slipped 45 points, or 0.2%. 

The main Wall Street indexes eked out new record highs on Monday, but their pace of gains now appeared to be cooling, as investors sought more insight into what a second Trump presidency will entail for the economy. 

The broad-based S&P 500 rose 0.1%, closing above 6,000 points for the first time ever. The tech-heavy NASDAQ Composite rose 0.1%, while the blue chip Dow Jones Industrial Average rose 0.7%.  CPI data, Fedspeak awaited 

Wall Street’s rally now appeared to be cooling as investors grew wary before key consumer price index inflation data due on Wednesday.

Inflation is expected to have remained steady in October from the prior month amid continued resilience in the US economy, but any signs of elevated inflation could potentially delay the Federal Reserve’s plans to cut interest rates further. 

The Fed cut rates by 25 basis points last week, and reiterated that it would maintain a data-driven approach to further easing. 

Recent signs of sticky inflation spurred some doubts over just how much further interest rates will fall. Traders were seen pricing in a 70.7% chance for another 25 bps cut in December, and a 29.3% chance rates will remain unchanged, CME Fedwatch showed.

Beyond the CPI data, focus this week is also on addresses from a slew of Fed officials for more insight into the central bank’s plans for rates.

Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin are set to speak on Tuesday.  Home Depot earnings in focus 

The quarterly corporate earnings season is beginning to ebb, although several firms are still due to unveil their latest results.

DIY retailer Home Depot (NYSE:HD ) is set to report Tuesday, with observers keen to see if more customers are choosing to spend on big-ticket home improvement projects after reining in such spending because of recent cost-of-living pressures.

Shopify (NYSE:SHOP ) will also release its third-quarter returns. In the previous quarter, the Canadian e-commerce retailer which helps small- and medium-sized businesses construct their online stores, gave an upbeat sales outlook thanks to demand for its artificial intelligence-enhanced tools.

Meanwhile, Spotify (NYSE:SPOT ) is tipped to post its numbers after the closing bell. The Swedish audio streaming giant, which has slashed headcount and reduced its marketing budget this year in a bid to corral expenses, delivered profit that just topped projections in the second quarter. Crude steadies after sharp falls

Oil prices rose Tuesday, rebounding after recent weakness following disappointment over the latest stimulus plan from top importer China.

By 05:15 ET, the Brent contract climbed 0.7% to $72.36 per barrel, while US crude futures (WTI) traded 0.7% higher at $68.56 a barrel.

Both contracts had fallen by more than 5% over the previous two trading sessions.

China unveiled a 10-trillion-yuan ($1.4-trillion) debt package on Friday to ease local government financing strains, but the measure is expected to provide little direct support to the economy.

In the US, tropical storm Rafael was seen largely dissipating in the Gulf of Mexico, soothing fears of supply disruptions in the region.   (Ambar Warrick contributed to this article.)

Source: Investing.com