S&P 500 futures showed little change on Tuesday as investors analyzed the latest inflation data in hopes of gaining insights into the Federal Reserve’s potential monetary policy adjustments.
With futures tied to the broader index remaining close to the flatline, Nasdaq 100 futures experienced a slight dip of 0.01%. Meanwhile, Dow Jones Industrial Average futures saw a modest increase of 38 points or 0.1%.
The consumer price index (CPI) in November demonstrated a year-over-year increase of 3.1% and a month-over-month rise of 0.1%. Economists surveyed by Dow Jones anticipated a 3.1% annual growth, with a projected flat month-on-month CPI. Core inflation, which excludes food and energy prices, aligned with economists’ expectations.
Investors are striving to conclude a strong year on a positive note, as the Dow, S&P 500, and Nasdaq Composite have all maintained three-day winning streaks and recorded six consecutive weeks of gains. The S&P 500 even closed at its highest level since March 2022, while the Dow settled at its peak since January 2022.
According to Christopher Rupkey, chief economist at FWDBONDS, the market is currently uncertain, as inflation has met expectations for this month’s core CPI at 0.3%. Nonetheless, Rupkey notes that this report isn’t favorable for Federal Reserve officials, although the surge in prices witnessed during the pandemic may have subsided.
Traders will now eagerly await the Federal Reserve’s policy announcement scheduled for Wednesday at 2 p.m. ET. The general consensus on Wall Street is that the central bank will maintain interest rates at their current levels. However, market participants will scrutinize Chair Jerome Powell’s commentary in search of potential indications regarding future rate cuts.
Source (CNBC)
