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US stock index futures showed little movement early Wednesday, stabilizing after a decline in the previous Wall Street session, as investors await pivotal inflation data. Meanwhile, crude oil prices gained amid expectations of increased demand in China following promises of economic stimulus.
Market Snapshot
- Dow Jones Futures: Down 65 points (-0.2%)
- S&P 500 Futures: Up 7 points (+0.1%)
- Nasdaq 100 Futures: Up 40 points (+0.2%)
Wall Street Performance
On Tuesday, all major indices faced losses:
- The S&P 500 and Nasdaq Composite each fell for the second consecutive day.
- The Dow Jones Industrial Average declined for the fourth straight session, dragged down by weak technology stocks.
Oracle (NYSE:ORCL) reported weaker-than-expected earnings, deepening pressure on tech stocks and amplifying investor concerns over sector resilience.
Inflation Data in Focus
All eyes are on the November Consumer Price Index (CPI), scheduled for release Wednesday. The data is expected to provide insights into inflation trends and inform the Federal Reserve’s monetary policy.
Market Expectations:
- Headline CPI: Expected to rise to 2.7% (YoY) from 2.6%.
- Core CPI: Anticipated to remain steady at 3.3% (YoY).
The Federal Reserve, meeting next week, is broadly expected to implement a 25 basis point rate cut, but officials have voiced caution about further easing due to persistent inflation concerns.
Corporate Earnings
- Adobe Systems (NASDAQ:ADBE):
Earnings are due after the market close, with investors closely watching for updates on the company’s AI initiatives. - Alphabet (NASDAQ:GOOGL):
The tech giant remains in focus following its announcement of a breakthrough in quantum computing, potentially revolutionizing processing speeds. - Dave & Buster’s (NASDAQ:PLAY):
The stock plunged 16% premarket after disappointing Q3 results and the unexpected departure of CEO Chris Morris.
Crude Oil Market
Oil prices rose Wednesday as traders welcomed China’s plans for targeted economic stimulus.
- US Crude Futures (WTI): Up 1% to $69.25/barrel.
- Brent Crude: Up 0.9% to $72.85/barrel.
Key Drivers:
- China’s pledge for more stimulus to revive economic growth.
- A sharp annual increase in Chinese oil imports in November, marking the first growth in seven months.
However, upside momentum was tempered by data showing unexpected increases in US oil inventories, raising concerns about demand heading into winter. The Energy Information Administration (EIA) will release official inventory figures later Wednesday.
Investor Outlook
Markets remain cautious amid a mix of inflation concerns, Federal Reserve policy uncertainty, and geopolitical developments, including potential trade impacts from the incoming Trump administration. The CPI report, Adobe’s results, and Chinese economic updates will likely shape sentiment in the near term.
