A trader works as Federal Reserve Chair Jerome Powell makes remarks on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, the United States, May 4, 2022. REUTERS/Brendan McDermid
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- Futures up: Dow 0.52%, S&P 0.55%, Nasdaq 0.52%
13 September (Reuters) – US stock index futures rose on Tuesday as investors waited for key inflation data that could provide clues as to how quickly and for how long the Federal Reserve will hike interest rates in its fight against rising prices.
The three major indices posted their fourth consecutive session of gains on Monday, as investors benefited from a sharp fall in share prices since mid-August, prompted by concerns about rising inflation and the impact of tighter monetary policy to contain it.
The Labor Department’s Consumer Price Index (CPI) report, due at 8:30 a.m. ET, is expected to show that August’s monthly CPI fell 0.1% from July, a decline for the first time in more than two years , while on a yearly basis it is likely to decline to 8.1%, mainly due to the recent slowdown in commodity prices.
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Excluding the volatile food and energy components, the core CPI is likely to have risen to 6.1% from 5.9% in July.
“The decline in oil prices has injected optimism into financial markets that inflation in the United States may be slowing, leading to less aggressive rate hikes by the Federal Reserve,” said Lukman Otunuga, senior research analyst at FXTM.
This will be the last significant data before the Fed’s September 20th-21st meeting.
Economists polled by Reuters said the US Federal Reserve will hike another 75 basis points next week and is likely to keep its interest rate stable for an extended period, although the interest rate outlook for the September meeting could change if inflation eases. Continue reading
Markets are currently pricing in an 87 percent chance of a 75 basis point rate hike.
At 6:40 a.m. ET, the Dow E-minis are up 170 points, or 0.52%, the S&P 500 E-minis are up 22.5 points, or 0.55%, and the Nasdaq 100 E-minis are up 65.75 points, or 0.52%.
The benchmark 10-year government bond yield fell to 3.31% after a three-day rally, while the two-year bond yield, which normally tracks interest rate movements, fell to 3.52%.
Oracle Corp (ORCL.N) rose 1.7% in premarket trading after the enterprise software maker met Wall Street’s first-quarter revenue targets. Continue reading
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Reporting by Devik Jain in Bengaluru; Edited by Shounak Dasgupta
Our standards: The Thomson Reuters Trust Principles.
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