U.S. stocks could pick up the shreds after the ravages inflicted by an inflation reading that came in more than expected. The major U.S. index futures are pointing to a higher open on Wednesday. On Tuesday, the major U.S. averages recorded their worst single-day declines since the middle of June 2020 amid the COVID-19 pandemic.
The sell-off, though across-the-board, was more severe among IT and communications services stocks.
“Markets hate rate hikes.. and, based on today’s CPI numbers, there is no relief in sight,” Jamie Cox, Managing Partner, Harris Financial Group said.
“Even though recent data suggests inflation is coming the Fed’s way, it’s not yet showing up in the data series,” he added.
| Index | Performance (+/-) | Value | |
|---|---|---|---|
| Nasdaq Composite | -5.16% | 11.633.57 | |
| S&P 500 Index | -4.32% | 3,932.69 | |
| Dow Industrials | -3.94% | 31,104.97 |
Here’s a peek into index futures trading:
| Index | Performance (+/-) | |
|---|---|---|
| Nasdaq 100 Futures | +0.50% | |
| S&P 500 Futures | +0.39% | |
| Dow Futures | +0.28% | |
| R2K Futures | +0.06% |
In premarket trading on Wednesday, the SPDR S&P 500 ETF Trust SPY was rising 0.43% to $394.80 and the Invesco QQQ TrustQQQ was moving up 0.44% to $295, according to Benzinga Pro data.
On the economic front, the Bureau of Labor Statistics will release the producer price inflation report for August at 8:30 a.m. EDT. The year-over-year rates of the headline and core readings were at 7.6% and 9.8%, respectively, in July. Since producer prices are considered a leading indicator of how prices would shape up at the retail level, a softer-than-expected reading could help the market bounce significantly.
The Energy Information Administration’s crude oil inventories report for the week ended Sept. 9 is due at 10:30 a.m. EDT.
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