Key facts
- S&P 500 and Dow futures rose ahead of inflation data and bank earnings.
- Bank of America disclosed a $1.21 billion regulatory fine.
- US consumer price index data is expected to show headline inflation accelerated to an annual 3.6% in September.
- Core CPI is estimated to have risen 0.2% on a monthly basis in September.
- New York Fed President John Williams indicated a potential for one more rate hike this year.
S&P 500 and Dow futures edged higher on Wednesday as AI-related stocks steadied after a recent selloff, though elevated oil prices kept investors on edge ahead of key inflation data and another round of bank earnings.
Bank of America shares fell 1.5% in premarket trading after the company disclosed a $1.21 billion regulatory fine that could weigh on third-quarter results. Morgan Stanley shares edged 0.7% higher, while BlackRock saw a jump in profit.
Chip stocks traded mixed after a sharp pullback earlier this week. Shares of Intel and Micron fell 1.1% and 1.3%, respectively, while Nvidia gained 0.2%. Alphabet gained 0.7%, while Meta and Amazon.com were marginally higher.
At 05:41 a.m. ET, Dow E-minis were up 234 points, or 0.45%, and S&P 500 E-minis were up 16.25 points, or 0.21%. Nasdaq 100 E-minis were down 9 points, or 0.03%.
Market participants were also awaiting US consumer price index data. Economists polled by Reuters estimated headline inflation accelerated to an annual 3.6% in September, with core CPI rising 0.2% on a monthly basis.
New York Fed President John Williams said the Fed may need to raise its policy rate once more this year to slow inflation. Remarks from Richmond Fed President Tom Barkin and the Fed’s Beige Book report on regional economic conditions were also due late in the day. Ahead of the CPI data, investors priced in a near 22% chance of a quarter-point US rate hike next week, the CME FedWatch Tool showed.
Oil prices edged higher, with Brent crude holding above the $100-a-barrel mark after two vessels were struck in the Strait of Hormuz.