US Futures Edge Lower Ahead of Key inflation Data – Europe Market Wrap
Wall Street was expected to open on a somewhat softer note according to equity futures, as traders anticipated inflation data that may indicate if the Federal Reserve will choose to reduce interest rates more gradually.
After the S&P 500 index reached a record high on Wednesday, contracts for the index were down 0.2%. While Bloomberg’s dollar index remained stable following an eight-day winning streak—the longest since April 2022—the yield on ten-year Treasury notes continued to hover around 4%, close to their highest levels since late July.
It is anticipated that US consumer price data will demonstrate a further slowdown in inflation, bolstering expectations that the Fed will keep lowering policy in the months ahead. However, traders have been compelled to reduce rate-cut expectations due to an unexpectedly good September jobs result; many are now projecting a 25 basis point decrease next month.
Although some officials had hoped to cut at a more moderate pace, the majority of rate- setters had favoured a 50 basis point drop, according to the minutes of the Fed’s September meeting.