US stocks may take shreds after the ravages inflicted by inflation readings that came in higher than expected. Major US index futures showed a higher open on Wednesday. On Tuesday, the US primary average recorded its worst one-day decline since mid-June 2020 amid the COVID-19 pandemic.
Sell-offs, even across the board, were heavier among IT and communications services stocks.
“The market hates rising rates .. and, based on today’s CPI numbers, there is relief in sight,” Jamie Cox, Managing Partner, Harris Financial Group said.
“Although recent data suggest inflation is coming to the Fed, it has not been seen in the data series,” he said.
|S&P 500 Index||-4.32%||3,932.69|
Here’s a look at the futures trading index:
|Nasdaq 100 Futures||+0.50%|
|S&P 500 Futures||+0.39%|
In premarket trading there, the SPDR S&P 500 ETF Trust SPY it was up 0.43% to $394.80 and Invesco QQQ TrustQQQ rose 0.44% to $295, respectively Benzinga Pro data.
On the economic front, the Bureau of Labor Statistics will release its producer price inflation report for August at 8:30 am EDT. The year-over-year rate of headline and core reading was at 7.6% and 9.8%, respectively, in July. Since producer prices are considered a key indicator of how prices will rise at the retail level, a softer-than-expected reading could help the market bounce significantly.
The Energy Information Administration’s crude oil inventory report for the week ended September 9 is due at 10:30 a.m. EDT.
The Mortgage Bankers Association’s weekly mortgage application data is due before the market opens.
Savings In Focus
- Nikola Corporation NKLA forward after BTIG upgraded its stock, citing accelerating hydrogen adoption.
- Johnson & Johnson JNJ looks higher after the company announced a $5 billion share buyback program.
- SoFi Technologies, Inc. SOPHIE also climbing in reaction to the analyst’s positive actions.
Commodities, Global Markets
Crude oil futures bounced back after a moderate decline seen on Tuesday amid the release of inflation data. A barrel of WTI crude oil is currently trading at $87.72, up 0.47%.
Major Asian markets closed firmly in the red, taking cues from Wall Street’s plunge overnight. The Japanese market also reacted to a weak domestic industrial production report for July.
European shares appeared to extend losses, with UK inflation data adding to the negativity seen in the market.