On Tuesday night, U.S. stock futures declined as investors processed the presidential debate between Republican candidate Donald Trump and Vice President Kamala Harris and awaited the upcoming August consumer inflation report. Dow Jones Industrial Average futures fell by 172 points (0.42%), while S&P 500 and Nasdaq 100 futures dipped by 0.52% and 0.68%, respectively.
After-hours trading saw GameStop shares plunge 10% after the company amended an open market sale agreement, potentially adding up to 20 million additional shares of its Class A common stock.
During the regular trading session, the S&P 500 rose nearly 0.5%, and the Nasdaq Composite gained 0.8%, driven by a surge in Nvidia shares. Meanwhile, the Dow Jones Industrial Average declined by 0.2% due to a drop in JPMorgan shares.
Investors are keenly awaiting Wednesday’s consumer price index (CPI) report for August. Economists surveyed by Dow Jones expect a 0.2% rise from the previous month and a 2.6% increase year-over-year.
This CPI report, alongside Thursday’s producer price index, will be crucial in shaping expectations for the Federal Reserve’s anticipated interest rate cut at the conclusion of its two-day meeting on September 18. According to CME’s FedWatch Tool, there is a 69% probability of a 25-basis-point rate cut and a 31% chance of a 50-basis-point reduction.
Kristina Hooper, Invesco’s chief global market strategist, opined on CNBC’s “Closing Bell” that a smaller 25-basis-point cut is more likely. A larger cut could signal economic distress and imply a policy misstep. Hooper emphasized that ongoing high interest rates increasingly risk a recession, suggesting that the Fed might need to hint at further rate reductions in the near future through its dot plot projections.
Investors continue to monitor these financial developments closely, given their significant implications for the broader market and economic outlook.
Original Story https://www.cnbc.com/2024/09/10/stock-market-today-live-updates.html
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