US Stock Futures Edge Upward as Markets React to Rising CPI

U.S. stock index futures experienced a slight increase in evening trading on Thursday following stronger-than-expected consumer inflation data, which contributed to a somewhat negative session on Wall Street.

Attention is now directed toward the upcoming third-quarter earnings season, set to kick off in earnest on Friday. Investors are also eagerly awaiting the much-anticipated unveiling of Tesla’s robotaxi.

S&P 500 Futures edged up by 0.1% to 5,834.75 points, while Nasdaq 100 Futures similarly rose 0.1% to 20,453.50 points, and Dow Jones Futures increased 0.1% to 42,782.0 points by 19:10 ET.

### Strong CPI Data Fuels Expectations for Smaller Rate Cut

Consumer Price Index (CPI) inflation data for September came in stronger than expected; while inflation did ease during the month, it did not fall as much as anticipated. This data strengthened the belief that the Federal Reserve may be less likely to accelerate interest rate cuts, with traders now pricing in a higher probability of a 25 basis point cut in November.

Comments from Federal Reserve officials reinforced this sentiment, particularly remarks from Atlanta Fed President Raphael Bostic, who suggested that a pause in rate adjustments for November might also be on the table.

The prospect of a slower pace in interest rate cuts could exert pressure on Wall Street, especially since U.S. stock valuations have reached record highs based on expectations of significant rate reductions. The Producer Price Index (PPI) inflation data scheduled for release on Friday, along with consumer sentiment readings, is expected to provide further insights into the economic landscape.

However, expectations for a minor rate cut were somewhat moderated by higher-than-expected weekly jobless claims data. Weakness in the labor market is anticipated to support the Fed’s easing strategy. This balanced the overall losses on Wall Street, aided by gains in several major technology stocks. The S&P 500 dipped by 0.2% to 5,780.05 points, the NASDAQ Composite essentially remained flat at 18,283.90 points, and the Dow Jones Industrial Average decreased by 0.1% to 42,454.12 points.

### Earnings Season and Tesla’s Robotaxi Reveal

The spotlight now shifts to the third-quarter earnings season, with major financial institutions like JPMorgan Chase & Co., Wells Fargo & Company, and Bank of New York Mellon scheduled to report on Friday.

Next week, Goldman Sachs Group Inc., Bank of America Corp., and Citigroup Inc. will also release their earnings.

In aftermarket trading, Tesla Inc. saw some stability as it prepared for the reveal of its robotaxi, which is slated for 22:00 ET. This event is anticipated to signify Tesla’s shift towards autonomous driving and artificial intelligence endeavors, especially as the company navigates a consistent decline in vehicle sales.