US Stock Index Futures Remain Steady as CPI Data Takes Center Stage

U.S. stock index futures experienced minimal movement in the evening trading on Wednesday as investors braced for important consumer inflation data that is expected to influence interest rate predictions.

Futures remained stable following a positive session on Wall Street, where the Dow reached record highs after the Federal Reserve’s September meeting minutes revealed considerable support among policymakers for a 50 basis point rate cut. However, the minutes also indicated that there was no consensus on the future pace of cuts, which left investors uncertain about the extent of potential rate reductions this year.

As of 19:17 ET (23:17 GMT), S&P 500 futures hovered at 5,840.0 points, while Nasdaq 100 futures were unchanged at 20,457.25 points. Dow Jones futures remained steady at 42,830.0 points.

### Anticipation Surrounding CPI Data

Attention is now focused on the consumer price index (CPI) data set to be released on Thursday, which may provide further insights into inflation and interest rates. The upcoming report is anticipated to indicate a modest decrease in CPI inflation, with core CPI—which excludes the more volatile food and energy sectors—expected to remain stable. Persistent inflation reduces the likelihood of the Federal Reserve aggressively cutting interest rates.

This expectation was reinforced by strong payroll data released last week, which diminished the probability of an additional 50 basis point cut in November. Traders are currently pricing in a 75.5% chance for a 25 basis point cut, with a 24.5% chance of maintaining rates in November.

Despite ongoing strength in the labor market and stubborn inflation suggesting some resilience in the U.S. economy, the outlook for a recession in the near future appears less likely. This sentiment supported Wall Street, with economically sensitive sectors performing particularly well.

On Wednesday, the S&P 500 rose by 0.7% to 5,792.04 points, the Dow Jones Industrial Average surged 1% to a record closing high of 42,512.0 points, and the NASDAQ Composite increased by 0.6% to 18,291.82 points.

### Upcoming Q3 Earnings Season

Attention this week is also shifting toward the third-quarter earnings season, with several major banks scheduled to report their results on Friday. Notable companies set to announce their earnings include JPMorgan Chase & Co, Wells Fargo & Company, and Bank of New York Mellon. Additionally, Goldman Sachs, Bank of America, and Citigroup will report earnings next week.

Early next week will also see earnings releases from Johnson & Johnson, UnitedHealth Group, and Walgreens Boots Alliance Inc.