US stocks were setting up for higher open on Wednesday, as investors looked ahead to fresh inflation data and the release of Federal Reserve minutes for a window into its thinking on interest rates.
Dow Jones Industrial Average (^DJI) futures put on around 0.2%, while S&P 500 (^GSPC) futures also rose 0.2%. Contracts on the tech-heavy Nasdaq 100 (^NDX) gained roughly 0.3%, poised to add to solid gains logged on Tuesday.
Meanwhile, Treasury yields continued to retreat from 16-year highs hit during the bond sell-off after Israel stepped up its bombardment of Gaza. The benchmark 10-year (^TNX) yield dropped to trade near 4.56% on Wednesday, compared with last week’s peak above 4.88%.
But bonds may not be out of the woods yet, some analysts said, given the lack of weak economic data or a solid reason for yields to keep falling.
More investors are now betting the Federal Reserve won’t hike interest rates at its November meeting, as the recent surge in bond yields is seen as effectively doing the tightening work of the central bank. Minutes from the Fed’s September gathering due later Wednesday should give more insight into the future path of its policy.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
A firmer-than-expected reading on US consumer inflation on Friday could compel the Fed to take action, some on Wall Street suggest. Meanwhile, an update to the producer price index on Wednesday should give more clues on inflationary pressures.
Potentially lifting some of those pressures, oil prices continued to slide as the impact on supply from the Middle East conflict appeared contained. Crude oil futures (CL=F) dropped 0.5%, while Brent crude futures (BZ=F) were down 0.3%.
In individual stocks, Exxon Mobil (XOM) shares slipped 2% after the energy giant agreed to buy shale rival Pioneer Natural Resources (PXD) in an all-stock deal valued at almost $60 billion. Pioneer shares rose 1.5%.
Also in focus, Birkenstock (BIRK) is expected to make its trading debut on the NYSE on Wednesday, after pricing its IPO at $46 a share. That values the German sandal maker at $8.64 billion.
KStock futures rise with Fed’s rate path in focus
Stocks were shaping up for a higher open on Wednesday, as Treasury yields retreated ahead of the release of minutes from the Federal Reserve’s last meeting.
Futures on the Dow Jones Industrial Average (^DJI) were up 0.24%, or 85 points, while S&P 500 (^GSPC) futures advanced 0.25%. Contracts on the tech-heavy Nasdaq 100 (^NDX) were 0.33% higher.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Credit: Source link
