U.S. stock index futures traded in a calm fashion Wednesday, ahead of the key monthly consumer price index, which could offers more clues of future Federal Reserve monetary policy.
At 06:30 ET (10:30 GMT), Dow Jones Futures rose 20 points, or 0.1%, S&P 500 Futures traded largely flat, while Nasdaq 100 Futures fell 10 points, or 0.1%.
The main Wall indices posted gains on Tuesday, with the S&P 500 rising 0.5%, the Dow Jones Industrial Average gaining 0.3%, and the NASDAQ Composite surging 0.8%, to close at a record high.
These gains came despite PPI data for April beating expectations.
Comments from Federal Reserve Chair Jerome Powell appeared to have helped the tone, after he said that monetary policy was tight enough at current levels, prompting the market to cheer that the Fed will not hike interest rates any further in 2024.
CPI release due after hotter-than-expected PPI data Despite Tuesday’s gains, markets were now on edge over a potentially hotter-than-expected CPI reading for April, later Wednesday, potentially ramping up concerns that U.S. inflation will remain sticky and diminish the prospect of an interest rate cut by the Fed.
Traders see a 50.5% chance that the U.S. central bank will start cutting rates in September, according to the CME FedWatch Tool.
Beyond the CPI data, U.S. retail sales data for April is also due later on Wednesday.
Meme stock rally cools, but GME and AMC remain buoyant So-called meme stocks extended Tuesday's gains into premarket trade, albeit at a slower pace than those seen earlier this week.
Videogame retailer GameStop (NYSE:GME) rose 10%, while theater chain AMC Entertainment (NYSE:AMC) rose 8%.
GME and AMC, which were at the heart of the previous meme stock rally, have more than doubled in value this week, after Keith Gill - a key figure in the meme stock community - began posting on social media following a nearly three-year absence.
Crude rises on US inventories draw Crude prices rose Wednesday, as industry data showed a drop in U.S. inventories and boosted expectations of tighter global markets.
By 06:30 ET, the U.S. crude futures traded 0.1% higher at $78.12 a barrel, while the Brent contract climbed 0.1% to $82.44 per barrel.
Data from the American Petroleum Institute indicated on Tuesday that U.S. oil inventories shrank 3.1 million barrels last week. If confirmed by the official data later Wednesday, this would suggest U.S. fuel demand was picking up with the advent of the travel-heavy summer season - a trend that could help tighten global crude supplies, even as U.S. production remains at record highs.
Expectations of tighter North American markets were also furthered by a swathe of devastating wildfires near Fort McMurray, a major Canadian oil sands city.
This optimism has overshadowed the International Energy Agency trimming its forecast for 2024 oil demand growth earlier Wednesday, in its monthly report.
The Paris-based energy watchdog lowered its growth outlook for this year by 140,000 barrels per day to 1.1 million bpd, largely citing weak demand in developed OECD nations.
