U.S. stock futures trudged higher on Wednesday ahead of a key day for the U.S. economy that will provide the latest snapshot of inflation levels and the final signal on the path of interest rates.
S&P 500 futures (ES=F) built on the 27th record of the year, rising 0.1%. Futures on the tech-heavy Nasdaq 100 (NQ=F) rose 0.2%, also pointing to gains after a record close for the index. Dow Jones Industrial Average futures (YM=F) rose 0.1%.
Wall Street is primed for a one-two punch Wednesday, with the latest on consumer prices at 8:30 a.m. ET. In the afternoon, the Federal Reserve will announce its latest interest rate decision.
The pace of inflation is expected to have eased over the past month, after some hotter-than-expected surprises in the first half of 2024. The consumer price index is expected to post headline inflation of 3.4%, which is in line with April, according to Bloomberg estimates. . On a core basis, excluding food and gas, prices are expected to have risen 3.5% in May compared to last year – a slight slowdown from April.
Read more: What influence does the labor market have on inflation?
In the meantime, the Fed’s decision is almost certain: the central bank is expected to maintain interest rates at their current 23-year high. Investors will be keeping a closer eye on the release of the Fed’s updated economic projections in its dot plot – specifically how many rate cuts it expects for the rest of the year.
The last we heard was in March, there were three. Policymakers will almost certainly scale this back, thanks in part to the persistence of the aforementioned inflation this year. These projections, along with what Fed Chairman Jerome Powell says in his press conference, could be the latest market-moving events in an exceptionally busy day.
In corporate bonds, shares of Apple (AAPL) cooled after rising to a record high on Tuesday. Shares fell 0.4% premarket.
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