Stock futures rise slightly ahead of key inflation data, Fed minutes

Traders on the floor of the NYSE, May 13, 2022.

Brendan McDermid | Reuters

Stock futures rose Wednesday morning as investors awaited the latest inflation numbers and minutes from the Federal Reserve’s latest meeting.

Futures linked to the Dow Jones Industrial Average added 101 points, or 0.36%. S&P 500 and Nasdaq 100 futures rose 0.42% and 0.51% respectively.

The moves came after the S&P 500 and Nasdaq Composite fell 0.65% and 1.1%, respectively, to post their fifth straight day of declines. The Dow ended the day on a higher note, up about 36 points, but gave up most of its gains from a rally earlier in the session.

Stocks fell from their highs and bond yields rose as the Bank of England said its market the operation will be over soon and pension funds have only three days to rebalance positions.

Investors are eagerly awaiting the September Producer Price Index, a wholesale final demand price indicator, due out Wednesday from the Bureau of Labor Statistics. Economists polled by Dow Jones expect the overall PPI to rise 0.2%, after falling 0.1% the previous month.

Minutes from the Federal Reserve’s September meeting will also be released on Wednesday. While Fed Chairman Jerome Powell has acknowledged that aggressive interest rate hikes could be painfulthe central bank will continue to forge ahead in its fight against inflation.

“Powell repeated, in what has become his mantra, that without price stability we cannot have a strong economy or a strong labor market,” said Quincy Krosby, chief global strategist for LPL Financial. “Investors fear that tight monetary policy, i.e. tighter financial conditions, could lead to the kind of financial crash that dries up liquidity and further hurts the global economy.”

Elsewhere, PepsiCo will release quarterly results before the bell on Wednesday. Bank earnings will start later in the week. Despite lower expectations, S&P 500 earnings are expected to rise further.

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