Market Snapshot: U.S. stock futures slip following Wall Street’s worst losses in more than two years

by | Sep 14, 2022 | Stock Market

U.S. stock index futures slipped on Wednesday, after seeing the worst daily losses in two years as investors reeled from disappointing consumer inflation data. Markets will get another data update with producer price inflation data due ahead of the open. How are stock-index futures trading?
S&P 500 futures
ES00,
+0.34%
dropped 3 points, or 0.1%, to 3,948

Dow Jones Industrial Average futures
YM00,
+0.23%
lost 28 points, or 0.1%, to 31,183

Nasdaq-100 futures
NQ00,
+0.45%
declined 7 points, or 0.1%, to 12,107

In a dramatic session on Tuesday, major indexes logged the biggest daily percentage falls since June 11, 2020. The Dow Jones Industrial Average 
DJIA,
-3.94%
tumbled 1,276.37 points, or 3.9%, to 31,104.97, the S&P 500
SPX,
-4.32%
fell 177.72 points, or 4.3%, to 3,932.69 and the Nasdaq Composite
COMP,
-5.16%
slumped 632.84 points, or 5.2%, to close at 11,633.57.

What’s driving the markets? Investors were seeking some equilibrium ahead of data on August producer price inflation, due at 8:30 a.m. Eastern, which are expected to show a drop of 0.1% following last month’s decline of 0.5%. In a blow to investors who had been hoping for an easing in high inflation, Tuesday’s data showed the U.S. CPI rising 0.1% in August and the annual rate slowing to 8.3%, against expectations for a monthly fall of 0.1% and a year-over-year rate of 8%. The core inflation rate also climbed by more than expected. Investors dumped stocks on worries sticky inflation could force the Federal Reserve to keep its aggressive tightening of monetary policy for longer. Some have predicted the Federal Reserve could next week raise interest rates by as much as 1%. “U.S. inflation is not coming down in a hurry and, despite some encouraging signs elsewhere, it has given hawkish price action in rates globally another lease of life,” said an ING team led by Antoine Bouvet, senior rates strategist. “This means flatter curves, and higher yields. 10Y Treasurys are now within touching distance of their 3.47% June peak and we do not see much that would stop it from beating that level,” said Bouvet. The yield on the 10-year Treasury note
TMUBMUSD10Y,
3.441%
was up 4.8 basis points at 3.462%, while that of the 2-year note
TMUBMUSD02Y,
3.779%
was up 6.8 basis points to 3.813% Tuesday’s Wall Street selloff spread to Asia, where the Nikkei 225 index
NIK,
-2.78%
led losses with a 2.7% drop. The yen
USDJPY,
-1.14%
bounced off a low of ¥144.94 after the Nikkei newspaper said the Bank of Japan had conducted a “check” on rates that some see as a precursor to intervention. European stocks
SXXP,
-1.00%
were modestly lower. Companies in focus
Shares of Comcast Corp. 
CMCSA,
-6.25%
 bounced 1% in premarket trading Wednesday, off the previous session’s 2 1/2-year closing low, after the cable TV and internet provider boosted its share repurchase program to $20 billion.

Shares of Uniper SE
UN01,
-13.98%
tumbled 20% Wednesday, following a report that the German government …

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