US stock index futures slip slightly ahead of key CPI release

Investing.com -- U.S. stock index futures slipped slightly Thursday as investors hunkered down ahead of key consumer inflation data that is likely to factor into the outlook for interest rates. 

At 05:50 ET (09:50 GMT), Dow Jones Futures were 45 points, or 0.1%, lower, S&P 500 Futures fell 10 points, or 0.2%, and Nasdaq 100 Futures dropped 39 points, or 0.2%.

The main indices registered a positive session on Wall Street on Wednesday, after the minutes of the Federal Reserve’s September meeting showed a substantial number of policymakers backed its 50 basis point cut. 

But the minutes also showed policymakers not committing to any particular pace of cuts in the future, which kept investors skittish over just how much rates will fall this year. 

The broad-based S&P 500 rose 0.7%, the Dow Jones Industrial Average surged 1% to a new record closing high, and the NASDAQ Composite gained 0.6%.  CPI data in focus 

The focus Thursday was now squarely on the release of the September consumer price index . 

The reading is expected to show a mild decline in headline consumer prices, while the core CPI - which excludes volatile food and energy prices - is expected to remain steady. Sticky inflation gives the Fed less impetus to cut interest rates at a fast pace. 

This notion was furthered by strong payrolls data released last week, which virtually eliminated bets for another 50 bps cut in November.

Traders were pricing in a 75.5% chance for a 25 bps cut, and a 24.5% chance for a hold in November, CME Fedwatch showed. 

Still, strength in the labor market and sticky inflation point to some resilience in the U.S. economy, diminishing the prospect of a recession in the coming months. This notion supported Wall Street, with economically sensitive sectors logging strong gains. Q3 earnings season set to begin

Focus this week is also on the third-quarter earnings season, with a string of major banks set to report on Friday. 

JPMorgan Chase (NYSE:JPM ), Wells Fargo (NYSE:WFC ) and Bank of New York Mellon (NYSE:BK ) are set to report third-quarter earnings on Friday, while Goldman Sachs (NYSE:GS ), Bank of America (NYSE:BAC ) and Citigroup (NYSE:C ) will report earnings next week.

Earnings from Johnson & Johnson (NYSE:JNJ ), Unitedhealth Group (NYSE:UNH ) and Walgreens Boots (NASDAQ:WBA ) are also due early next week.

Ahead of this, results from Delta Air Lines (NYSE:DAL ) are due this season, kicking off the third-quarter earnings season for US airlines.

The Atlanta-based company reported record revenue in its June quarter of $15.4 billion, although the figure was slightly below Wall Street estimates, as a boom in summer travel led to overcapacity that put downward pressure on fares. Crude rises as Milton hits Florida

Oil prices rose Thursday as Hurricane Milton hit Florida hard, adding to worries about potential supply disruptions in the Middle East.

By 05:55 ET, the Brent contract climbed 1.4% to $77.66 per barrel, while U.S. crude futures (WTI) traded 1.5% higher at $74.36 a barrel.

Both contracts have fallen around 5% over the last two sessions.

In the US, Hurricane Milton has made landfall in Florida, and while the storm has largely dodged the oil infrastructure in the Gulf of Mexico it has already driven up demand for gasoline in the state, which has helped support crude prices.

Additionally, traders remained on edge over a potential escalation in the conflict in the Middle East, especially if Israel targets Iran’s oil facilities.   (Ambar Warrick contributed to this article.)

Source: Investing.com