US stock futures steady with Fed, inflation in focus

U.S. stock index futures moved little in evening deals on Tuesday, with investors turning averse to big trades before more signals on interest rates from the Federal Reserve and key inflation data. 

Futures steadied after a positive, tech-driven session on Wall Street, although most other sectors lagged on Tuesday. Investors still remained on edge over continued tensions in the Middle East, while cheer over more stimulus measures in China ran dry. 

S&P 500 Futures fell slightly to 5,798.25 points, while Nasdaq 100 Futures fell 0.1% to 20,286.50 points by 19:11 ET (23:11 GMT). Dow Jones Futures steadied at 42,378.0 points.  Fed minutes, CPI data on tap 

Markets were now awaiting more cues on U.S. interest rates, amid growing doubts over the Fed’s plans to cut rates further in the coming months.

The minutes of the Fed’s September meeting are due later on Wednesday, while several Fed officials are also set to speak.

Strong payrolls data released last week sparked doubts over just how much impetus the Fed has to keep cutting rates at a fast pace. Traders were seen pricing in an 81.1% chance for a 25 basis point reduction in November, and an 18.9% chance rates will remain unchanged, according to CME Fedwatch .

The Fed cut rates by 50 bps in September and signaled future cuts will still be dependent on inflation and the labor market.

Consumer price index inflation data is due on Thursday and is likely to factor into the Fed’s outlook.  Wall Street buoyed by tech as Nvidia rallies 

Wall Street indexes rose on Tuesday, buoyed chiefly by technology indexes as market darling NVIDIA Corporation (NASDAQ:NVDA ) rallied 4%. The stock drifted lower in aftermarket trade. 

The S&P 500 rose 1% to 5,751.13 points on Tuesday, while the NASDAQ Composite surged 1.4% to 18,182.34 points, recouping most of Monday’s losses. The Dow Jones Industrial Average rose 0.3% to 42,080.37 points. 

Focus this week is also on the start of the third-quarter earnings season, with a string of major banks set to report earnings on Friday. Markets will be watching to see whether corporate profits were able to shrug off pressure from high rates and sticky inflation. 

 

Source: Investing.com