Market Snapshot: Stock futures gain ground as traders eye looming U.S. inflation data

by | Aug 9, 2023 | Stock Market

Wall Street stock futures rose on Wednesday as traders absorbed news of deflation in China and looked ahead to U.S. price data.How are stock-index futures trading
S&P 500 futures
rose 12 points, or 0.3%, to 4531

Dow Jones Industrial Average futures
added 62 points, or 0.2%, to 35457

Nasdaq 100 futures
gained 58 points, or 0.4%, to 15412

On Tuesday, the Dow Jones Industrial Average
fell 159 points, or 0.45%, to 35314, the S&P 500
declined 19 points, or 0.42%, to 4499, and the Nasdaq Composite
dropped 110 points, or 0.79%, to 13884.

It was the five drop in six sessions for the S&P 500.What’s driving markets News of falling consumer prices in China — which fell 0.3% for the year to July — dovetails with the country’s weak trade data released this week and raises concerns that growth is faltering in the world’s second biggest economy. “China is now witnessing the actual cost of goods both in stores and at the factory gate falling. It is indicative of a significant slowdown in the Chinese economy, which is beset by high levels of indebtedness,” said Steve Clayton, head of equity funds, Hargreaves Lansdown. However, traders also note that deflationary pressures emanating from China may help further reduce goods inflation in the U.S. and elsewhere, thereby helping central banks to soon stop raising borrowing costs. The upshot is a mildly positive mood across markets as investors welcome how stocks rallied off Tuesday’s lows, and as they await the important U.S. consumer price index data on Thursday, and producer prices on Friday.

“Markets don’t appear too adventurous ahead of the U.S. CPI; instead, traders are reverting the risk-off trade from overnight markets after yet another August storm front passed. But much of the move is likely pre-U.S. CPI housekeeping, given that stocks, bonds and currency markets react wildly to CPI beats and misses,” said Stephen Innes, managing partner at SPI Asset Management. Helping support sentiment was a better showing in Europe, where Italian banks led the sector higher after Rome watered down its windfall tax …

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