Futures climb ahead of crucial inflation data.
(Reuters) – U.S. stock index futures rise ahead of key inflation data
The eagerly anticipated consumer price index (CPI) for July is set to be released at 8:30 a.m ET. Analysts expect a 0.2% increase, following a similar rise in the previous month. Over the past 12 months, the CPI is estimated to have climbed 3.3%, up from 3.0% in the previous month.
According to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, “Any bad surprise on the inflation front could revive the Federal Reserve hawks, but we are far from pricing another hike in September just yet.”
Traders are optimistic that the Federal Reserve has completed its aggressive interest rate hike campaign. The CME FedWatch Tool shows an 86.5% probability of no rate hike by the central bank in its September policy meeting.
Later in the day, we can expect the release of initial jobless claims data, as well as remarks from Atlanta Fed President Raphael Bostic and Philadelphia President Patrick Harker.
Yesterday, the tech-heavy Nasdaq experienced a decline, with Nvidia falling 4.7%. Other megacap stocks, known as the “Magnificent Seven,” also followed suit, dampening this year’s stock rally.
Despite this, the Nasdaq has seen a 31% increase this year, driven by hopes of a soft landing for the U.S. economy and optimism surrounding artificial intelligence.
Rate-sensitive megacap stocks such as Amazon.com, Microsoft, and Apple are showing early gains in trading.
As of 05:27 a.m. ET, Dow e-minis are up 174 points, S&P 500 e-minis are up 24.25 points, and Nasdaq 100 e-minis are up 94.75 points.
In terms of earnings, Walt Disney is performing well in premarket trading after beating Wall Street estimates for adjusted earnings per share.
Capri Holdings shares have surged 30.1% following reports of a potential deal with New York-based Tapestry, the owner of Coach.
In other news, President Joe Biden has signed an executive order that restricts new U.S. investment in China’s sensitive technologies and requires government notification in other tech sectors.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Vinay Dwivedi)
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