Traders work on the floor of the New York Stock Exchange during afternoon trading on April 9, 2024 in New York City.
Michael M. Santiago | Getty Images
Stock futures hovered around the flatline Tuesday night as investors awaited key U.S. inflation data that would inform the direction of the Federal Reserve’s interest rate policy.
Futures tracking the Dow Jones Industrial Average rose 37 points, or 0.09%. S&P 500 futures rose 0.08% and Nasdaq 100 futures rose 0.1%.
In regular trading on Tuesday, investors appeared to be in a holding pattern ahead of the March consumer price index release. The Dow 30 fell 0.02%, while the S&P 500 rose 0.1%. The Nasdaq Composite rose 0.3%.
Economists surveyed by Dow Jones, whose CPI report is scheduled to be released Wednesday at 8:30 a.m. ET, said the CPI rose 0.3% from a month earlier in March and 3.4% from 12 months ago. Estimated. . Economists expect core CPI, which excludes volatile food and energy prices, to rise 0.3% and 3.7%, respectively.
Traders are keeping an eye on CPI data for clues about how central bank policymakers will proceed with interest rate policy, and the outcome is sure to influence market movements on Wednesday. According to the CME FedWatch tool, federal funds futures trading data suggests there is a 42% chance that the federal funds (FR) will keep rates unchanged in June.
Quincy Crosby, chief global strategist at LPL, said that a stronger-than-expected inflation rate could lead to a deep pullback after this year’s market rally, while weaker inflation could push U.S. Treasury yields higher. There is a possibility that there will be a recession and the stock market will rise. Finance.
“Markets are becoming increasingly concerned that inflation remains stubborn or is stuck on a downward trajectory,” Crosby said. “If the Fed presses ahead with an easing cycle without the decline in inflation accelerating, there will be a whiff of stagflation in the market.”
In addition to Wednesday’s big inflation report, investors are also looking forward to the minutes from last month’s Fed meeting. They will be looking for clues about where policymakers stand on expected rate cuts this year.
First quarter earnings season is just around the corner. Delta Air Lines plans to announce results before the bell Wednesday.
