A trader works on the floor of the New York Stock Exchange during opening bell in New York City on August 21, 2023.
Angela Weiss | AFP | Getty Images
U.S. stock futures were slightly negative Wednesday morning as investors awaited the release of the consumer price index for further insight into inflation.
Futures tied to the Dow Jones Industrial Average moved lower by 45 points, or 0.1%. S&P 500 futures lost 0.1%, while Nasdaq 100 futures ticked down 0.1%.
Wall Street’s focus is now turning toward the August CPI report, due Wednesday morning.
Economists are estimating a 3.6% year-over-year and a 0.6% monthly rise in inflation, according to Dow Jones. This would mark an increase from the prior month’s respective readings of 3.2% and 0.2%. Core CPI, which omits food and energy costs due to volatility, is forecasted to have risen 4.3% from a year ago, compared to a 4.7% annual gain in July. The monthly core increase is projected at 0.2%.
Wall Street has mostly priced in a pause in rate hikes at the Fed’s next meeting. Fed funds futures pricing data as of Wednesday morning indicate a 93% probability of rates remaining the same, according to the CME FedWatch Tool.
A particular focus will be put on inflation in the services segment of the economy, according to Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Company.
“The market’s essentially pricing in an end to rate hikes from here on out. If there’s a higher-than-expected number, it kind of reaffirms the narrative that wage inflation is driving structural inflation in the overall economy,” Stucky said.
The major averages all posted losses during Tuesday’s main trading session. The Nasdaq Composite was particularly hard-hit, declining 1% as tech names came under pressure. The S&P 500 fell nearly 0.6%, while the Dow ticked down less than 0.1%.
Correction: An earlier version misstated the day Adobe reports earnings.