Stock Futures Drop as Inflation Data and Trump-Harris Debate Await Analysis
Market Sentiment Before Inflation Data
U.S. stock futures were pointing to losses at the open as traders await the release of inflation data and digest the debate between presidential candidates Kamala Harris and Donald Trump.
- Dow Jones Industrial Average futures were down 104 points, or 0.3%.
- S&P 500 futures were falling 0.1%.
- Nasdaq 100 futures were down 0.2%.
Expected CPI Release
The main event for markets will be the release of the consumer price index. Economists surveyed by FactSet expect an increase of 2.6% in consumer goods and services in August on a year-over-year basis. This would compare to a 2.9% increase seen in July, marking the lowest CPI reading since early 2021.
Federal Reserve Implications
Easing inflation in line with expectations could solidify predictions for the Federal Reserve to begin cutting interest rates with a quarter-point reduction.The yield on the 10-year Treasury note stood at 3.618% early on Wednesday, ticking down from the previous day.
Market Reactions to the Debate
Meanwhile, markets were also digesting the Harris-Trump debate held late on Tuesday. “Markets seem to have awarded Harris a victory on points… In FX (foreign exchange), a Trump win typically correlates with a stronger dollar, which is trading on the soft side across the board,” wrote ING analyst Francesco Pesole in a research note.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.