HomeBusinessFuture images are lackluster thanks to inflation figures and a speech by...

Future images are lackluster thanks to inflation figures and a speech by Fed Chairman Powell

(Reuters) – U.S. stock index futures were little changed on Tuesday as investors waited on producer price data for clues on inflation in the world’s largest economy and awaited Fed Chairman Jerome Powell’s speech later in the day.

The producer price index (PPI) for final demand is expected to have risen 0.3% last month, after rising an unchanged 0.2% in March, according to economists polled by Reuters.

The PPI is expected to rise 2.2% in the 12 months to April, after rising 2.1% in the previous month.

Stubborn inflation and continued strength in the labor market have prompted financial markets and most economists to lower expectations for an initial Fed rate cut.

Traders now see a 49.6% chance that the central bank will cut rates by 25 basis points in September, according to the CME FedWatch Tool, up from 44% last month. This compares with expectations for a first interest rate cut as early as March at the beginning of the year.

See also  Access to this page has been denied.

Still, stocks are up so far this year, with all three major U.S. indexes hovering around new record highs, buoyed by better-than-expected first-quarter earnings numbers and hopes that the Fed will cut rates at some point this year.

The focus will be more on Wednesday’s consumer price data to help assess whether the upside surprises in the first quarter were a blip or a worrying trend.

Meanwhile, Fed Chairman Jerome Powell will speak at 2pm GMT.

At 5 a.m. ET, the Dow e-minis were up 11 points, or 0.03%, the S&P 500 e-minis were up 1 point, or 0.02%, and the Nasdaq 100 e-minis were up 7.75 points, or 0.04%.

Alibaba’s US-listed shares added 0.7% in premarket trading ahead of the results.

Meanwhile, US President Joe Biden unveiled a bundle of sharp tariff increases on a range of Chinese imports, including electric vehicles, computer chips and medical products.

US-listed shares of Chinese EV makers Li Auto and Xpeng fell more than 2% each.

See also  PayPal revenue increases 27% under new reporting method. PayPal stock is about to breakout.

GameStop rose 39.2% and is set to continue its rally after flag bearer Roaring Kitty posted on X.com for the first time in three years.

Other 2021 meme rally participants and heavily shorted stocks such as AMC Entertainment and Koss Corp rose 38.2% and 12.6%, respectively.

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila)

- Advertisement -


Please enter your comment!
Please enter your name here

Most Popular

Recent Comments