Investing.com — U.S. stock index futures edged higher on Wednesday as investors grew cautious ahead of key consumer inflation data and major banks’ corporate earnings releases.
As of 05:45 ET (10:45 GMT), it was up 83 points (0.2%), up 9 points (0.2%) and up 47 points (0.2%).
Wall Street indexes suffered volatile trading on Tuesday as technology stocks continued to slump. They also had a slow start to the year after falling from all-time highs through December.
It rose by 0.1%, rose by 0.5%, and fell by 0.2%.
CPI data to provide more interest rate indicators
The focus now was squarely on upcoming inflation data that is expected to provide further insight into the Fed’s interest rate plans.
The readings are scheduled to be released at 8:30 a.m. ET, with economists estimating that the headline consumer price index will rise 0.4% month-over-month in December, slightly faster than the previous month’s 0.3% pace. I am doing it. Compared to the same month last year, the CPI is expected to be 2.9%, up from 2.7% in November.
The so-called “core” figure, which excludes items such as food and fuel, is expected to be 0.3% on a monthly basis, or 3.3% compared to the same month last year, the same level as November.
The report comes amid concerns about persistent inflation, especially after last week’s big jobs report. President-elect Donald Trump’s plans to impose harsh tariffs on allies and adversaries alike have also fueled concerns about price pressures.
The market expects the pace of rate cuts to slow significantly in 2025, a trend that could bode poorly for risk-driven assets.
December data released on Tuesday was softer than expected, but the announcement provided little reassurance to markets, given that some of the inflation indicators that are also factored into the data remain elevated. I didn’t give it.
PCE data is the Fed’s preferred measure of inflation and is expected to be released later this month.
Major banks to announce quarterly results
In the corporate sector, many large banks are scheduled to report their latest quarterly profits on Wednesday, with investors eyeing them as potential sources of cash as post-election stock gains slow.
JPMorgan Chase (NYSE:), Goldman Sachs (NYSE:), citygroup (NYSE:) and wealth management giant BlackRock (NYSE:) are expected to release numbers before the opening bell on Wednesday.
The focus is likely to be on investment banking and trading profits, especially after a surge in Wall Street stocks fueled by hopes of a new era of deregulation and tax cuts after Trump’s election victory. Lower borrowing costs for companies could also boost performance.
Oil prices rise as US inventory withdrawals
Oil prices edged higher on Wednesday on concerns that global supply could be disrupted by a decline in U.S. crude inventories and new sanctions on Russian oil exports.
By 5:45 a.m. ET, U.S. crude oil futures (WTI) were up 0.3% at $76.61 a barrel, and Brent crude oil futures were up 0.2% at $80.08 a barrel. It became a dollar.
Prices fell on Tuesday after the U.S. Energy Information Administration said it expects oil to be under pressure for the next two years as supply exceeds demand.
Still, a report late Tuesday showing a decline in crude oil inventories in the world’s largest oil consumer, the United States, provided some support for the market.
Traders also continue to focus on Russian oil sanctions, amid uncertainty about how much Russian supplies will be lost to global markets and whether alternative measures can make up for the shortfall.
(Amber Warrick contributed to this article.)
