U.S. stock futures edged higher on Thursday as investors eagerly awaited the release of new consumer inflation data for valuable insights into the state of the economy.
Futures linked to the Dow Jones Industrial Average showed an increase of 118 points, or 0.3%. Similarly, S&P 500 futures and Nasdaq 100 futures both displayed a 0.4% gain.
The consumer price report for September is set to be unveiled on Thursday morning. Economists, surveyed by Dow Jones, anticipate a 0.3% month-over-month increase for September and a 3.6% rise from the previous year. The strength of inflation depicted in this report is seen as pivotal in the Federal Reserve’s decision regarding interest rates during its upcoming two-day meeting starting Oct. 31.
This data follows a September producer price index that surpassed expectations.
“[August’s] CPI print was slightly stronger than we anticipated, although the downward trend in core inflation persisted. We hope for this trend to continue, while closely monitoring the impact of higher energy prices on broader inflation in the months ahead if they persist,” stated Vanguard senior economist Andrew Patterson.
Amidst these economic developments, the ongoing Israel-Hamas war has raised concerns about a potential oil supply crunch and subsequent fuel price hikes if the geopolitical instability extends to neighboring oil-producing regions.
Traders will also be attentive to jobless claims numbers for the week ending Oct. 7. In addition, remarks from Atlanta Fed president Raphael Bostic and Boston Fed president Susan Collins later in the day could offer Wall Street further insights into the central bank’s stance.
During Wednesday’s trading, the major averages recorded modest gains, marking a fourth consecutive winning session. The Dow saw a 0.2% advancement, the S&P 500 gained 0.4%, and the Nasdaq Composite, which climbed 0.7%, closed above its 50-day moving average for the first time since September.