S&P 500 futures remained little changed early Tuesday as traders braced for an October consumer price index report and weighed fresh comments from Federal Reserve officials.
Futures tied to the broad market index traded near the flatline, while Dow Jones Industrial Average futures rose 156 points, or 0.3%. Nasdaq-100 futures slipped 0.4% during the premarket session.
The Dow Industrials gained 1,104 points, or 2.2%, the S&P 500 popped about 2.4%, and the Nasdaq Composite rose 2.7%.
Monday’s rally came after a rocky week for markets, in which traders grew concerned about the potential for a slowdown in data center buildouts after Democrats posted big victories in the midterm elections.
Federal Reserve Governor Christopher Waller said in a speech Tuesday that he thinks a December rate hike is likely. Waller also opened the door for a larger half-point increase next month as inflationary pressures persist.
While the precise timing of the hikes doesn’t matter, ensuring that the promised hikes are implemented in a reasonable period of time does,
Waller said in his Tuesday remarks.
Waller’s comments preceded the October consumer price index report scheduled for release at 8:30 a.m. ET. Economists polled by Dow Jones expect headline CPI to grow at a rate of 0.3% and core CPI to rise 0.2% from the prior month.
Such figures would mark a deceleration from September readings. In September, headline CPI grew 0.6% and core CPI advanced 0.3%.
We think the slowdown in core CPI will stem from a reversion of shelter prices, primarily owners’ equivalent rents and lodging away from home. Similarly, the stabilization in diesel prices should help to quell price pressures in energy-intensive goods,
wrote Christopher Hodge, chief economist of the U.S. at Natixis CIB Americas.
Annual figures will not be provided for Tuesday’s report because of the 2025 government shutdown. The Bureau of Labor Statistics was unable to collect some data during that period, leaving no comparable figure for the index.
| Index / Futures | Recent Movement | Percentage Change |
|---|---|---|
| Dow Jones Futures | ||
| Nasdaq-100 Futures | ||
| S&P 500 Futures | ||
| Pan-European Stoxx 600 | ||
| U.K. FTSE 100 |
International markets traded higher across Europe and Asia ahead of the U.S. inflation data. The pan-European Stoxx 600 rose 0.64%, and the U.K.’s FTSE 100 added 0.26%.
France’s CAC 40 increased 0.88%, while Germany’s DAX gained 0.94%. In Asia, South Korea’s Kospi surged 4.3%, and Japan’s Nikkei 225 added 2.89%.
Hong Kong’s Hang Seng Index rose 0.42%, mainland China’s CSI 300 added 0.26%, and Australia’s S&P/ASX 200 gained 1.27%.
Traders on the floor of the American Stock Exchange and the New York Stock Exchange continued monitoring macroeconomic indicators following the volatile midterm election week.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
