US stock futures fell on Wednesday ahead of new consumer inflation data, as investors weighed whether a Donald Trump White House would increase pressures on prices.
Dow Jones Industrial Average futures (YM=F) fell about 0.3%, following a sharp decline as stocks closed lower across the board. Contracts on the tech-heavy S&P 500 (ES=F) and Nasdaq 100 (NQ=F) also lost 0.3%.
Inflation has taken center stage again after the post-election surge hit a wall. The FOMO market has lost its appeal as it accepts that President-elect Trump’s policies could boost inflation and the economy. That helped boost Treasury yields, promising higher borrowing costs across the board.
Now the wait continues for October’s Consumer Price Index, which is seen as unlikely to show much progress in cooling inflation back to the Federal Reserve’s target. The headline CPI reading is expected to hit 2.6%, up from September, when it is released at 8:30 a.m. ET.
Investors will focus on the “core” data – which excludes food and gas prices – to provide the main clues about the pace of the Federal Reserve’s easing after it cut interest rates by 0.25%. last week. Many economists suggest that the prospect of rising inflation from Trump will lead the central bank to scale back rate cuts this cycle.
Read more: What the Federal Reserve’s rate cut means for bank accounts, CDs, loans and credit cards
The Federal Reserve may have to reconsider another cut at its December meeting if inflation surprises “on the upside” over the next month, Minneapolis Fed President Neel Kashkari told Yahoo Finance. “That might give us pause,” he said Tuesday at Yahoo Finance’s Invest conference.
Trump named Tesla CEO Elon Musk and former Republican candidate Vivek Ramaswamy to lead a new Department of Government Efficiency. The incoming president’s choices for his cabinet are being closely watched for their impact on his policies and the economy, although DOGE is not a government agency.
Coming soon
Live stock market coverage for Wednesday, November 13, 2024