Stock futures were flat early Wednesday as Wall Street prepares for November’s headline inflation report and the start of the Federal Reserve’s monetary policy meeting in December.
Futures related to the Dow Jones Industrial Average fell 0.01%, while futures related to the S&P 500 and Nasdaq 100 traded flat, falling 0.08% and 0.14%, respectively.
inspiration Shares gained nearly 2% after hours on strong quarterly results.
Investors are looking forward to the release November consumer price index report, expressing hope that there will be signs of declining inflation. Economists polled by Dow Jones expect an increase of 0.3% month over month or an annual pace of 7.3%. That would be a reversal from the monthly increase of 0.4% in October and the annual gain of 7.7%.
Tuesday’s inflation report could play a major role in the Fed’s next rate hike decision expected at the close of its two-day policy meeting on Wednesday.
Traders are largely pricing in an increase of 50 basis points, which is a slight drop from the previous four highs. They will also monitor updated economic forecasts and comments from Chairman Jerome Powell’s press conference for signs of a potential political pivot as recession fears persist on Wall Street.
Monday’s overnight moves follow a strong session for all MAs after a brutal bearish week. The Dow Jones rose more than 528 points, or 1.58%, while the S&P and Nasdaq rose 1.43% and 1.26%, respectively.
All major S&P 500 sectors finished higher, sending energy stocks higher, which rose along with higher oil prices.
“I think this is a reflection of what is expected from the CPI number tomorrow, and I hope the Fed confirms a 50 basis point increase on Wednesday,” said Kevin Phillip, partner at Bel Air Investment Advisors. “I think the market is, as it has been before, the banks are based, in my opinion, very heavily on some kind of Fed pivots and this bounce that we had today is fragile at best.”
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