Traders remain attentive on the floor of the New York Stock Exchange as U.S. stock futures showed little movement on Wednesday night in anticipation of the upcoming consumer price index (CPI) report for September. Futures linked to major indices like the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 hovered close to unchanged levels, with minimal decreases observed.
Wednesday’s trading session culminated in record closures for the S&P 500 and Dow Jones Industrial Average. The S&P 500 surged by 0.71%, setting a new historical high, while the Dow climbed over 400 points, marking a 1% increase. Significant contributions from major technology stocks propelled the Nasdaq Composite to a 0.6% rise.
Investors are keenly awaiting Thursday’s release of September’s CPI report, seeking indications of a cooling inflation trend. Projections from economists polled by Dow Jones anticipate a moderate 0.1% monthly increase and a 2.3% annual rise. This report is crucial for shaping the Federal Reserve’s policy decisions at their November meeting. Current Fed funds futures data from CME Group’s FedWatch tool indicate a 70% probability of a quarter-point rate cut.
Stephanie Roth, chief economist at Wolfe Research, suggests that a 50 basis point cut is unlikely. The focus now is on whether the Fed will opt for a 25 basis point reduction or hold rates steady. Roth mentioned on “Power Lunch” that a supportive CPI report, with core CPI expected at 0.3%, could facilitate a rate cut. Economists expect core CPI, excluding food and energy, to increase by 0.2% monthly.
Additionally, Thursday will see the release of weekly initial jobless claims, alongside Delta Air Lines’ quarterly earnings report before the market opens. Investors are poised to interpret these economic indicators as they assess potential impacts on market trends and Federal Reserve policy decisions.
Original Story https://www.cnbc.com/2024/10/09/stock-market-today-live-updates.html
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