U.S. stock futures are trading higher early Wednesday as traders speculate on a potential rate cut in September following the easing inflation figures released yesterday. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 1.27%, 0.17%, and 0.20%, respectively, at 4:55 a.m. EST on August 13.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
In Tuesday’s trading session, major indexes jumped after July’s Consumer Price Index (CPI) data came in lower than expected. The S&P 500 and the Nasdaq Composite both closed at new record highs, up 1.1% and 1.4%, respectively. Additionally, the Dow Jones advanced 1.1%.
Inflation increased by 0.3% month-over-month and 2.7% year-over-year. The monthly rise matched the consensus estimate, while the yearly rise came in below the estimate of 2.8%. According to data from CME’s FedWatch Tool, the market is now pricing in nearly a 94% chance of an interest rate cut in September.
After the markets closed yesterday, Cava Group (CAVA) stock collapsed by 22% following the report of weak Q2 revenue growth and a lowered same-store sales guidance for fiscal 2025. Moreover, CoreWeave (CRWV) stock plunged 10.3% after missing Q2 earnings estimates, despite beating sales expectations. Also, Rigetti Computing (RGTI) stock dropped after the quantum computing company missed both Q2 sales and earnings expectations.
There are no important economic reports expected today, but the markets are eagerly awaiting Thursday’s Producer Price Index (PPI) for further clues on wholesale inflation.
Turning to the earnings season, quarterly reports from Cisco Systems (CSCO), Tencent Holdings (TCEHY), Bath & Body Works (BBWI), and Lulu’s Fashion Lounge (LVLU) are expected today.
Meanwhile, the U.S. 10-year Treasury yield was down, floating near 4.26%. WTI crude oil futures were trending lower, hovering near $62.96 per barrel as of the last check. Additionally, the Gold Spot U.S. dollar price increased to nearly $3,404 per ounce on Wednesday.
Elsewhere, European stocks opened mostly in the green as traders welcomed the cooling U.S. inflation data and looked ahead to Thursday’s PPI inflation reading. Global markets are anticipating a 25-basis-point rate cut by the U.S. Federal Reserve in September.
Asia-Pacific Markets Traded Higher Today
Asia-Pacific markets traded mostly higher today on hopes of a Federal Reserve rate cut in September.
Hong Kong’s Hang Seng index advanced 2.58%. In China, the Shanghai Composite index gained 0.48%, while the Shenzhen Component added 1.31%. Japan’s Nikkei surged 1.30% to reach an all-time high and the Topix rose 0.83%.