U.S. futures edge higher before key inflation report
BNN Bloomberg
(Bloomberg) -- US equity futures were higher on Wednesday in cautious trading before US inflation data that will shape investor expectations for further Federal Reserve interest-rate hikes.
S&P 500 contracts advanced 0.4%, following a fourth session of declines in the underlying gauge Tuesday after Micron Technology Inc. became the latest chipmaker to warn of slowing demand. Nasdaq 100 futures rose 0.5% as Tesla Inc. gained in premarket after Chief Executive Officer Elon Musk’s biggest share sale on record. Europe’s Stoxx 600 Index erased an initial drop.
Bonds steadied. The two-year Treasury rate exceeds the 10-year by almost 50 basis points, an inversion -- around the deepest since 2000 -- that is viewed as a sign of a looming recession under the Fed’s monetary-tightening campaign to curb inflation.
An imminent report is expected to show headline US consumer-price inflation cooled but stayed elevated in July, while the core reading may have quickened on an annual basis. How the figures affect views on Fed tightening will be key for risk sentiment.
