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Stock futures are little changed as key consumer inflation report looms ahead

4 d ago

**Stock Futures Flat as Traders Await August CPI Report; Fed Rate Decision Hinges on Inflation Data** Stock futures were little changed Thursday night as traders looked ahead to August's consumer price index (CPI) report, a pivotal data point that will factor into the Federal Reserve's Sept. 16 interest rate decision. S&P 500 futures edged marginally higher, Dow Jones Industrial Average futures slipped 11 points, and Nasdaq 100 futures rose less than 0.1%. In regular trading Thursday, the Dow fell over 300 points (0.6%), the S&P 500 lost 0.6%, and the Nasdaq Composite slipped 0.7%, marking the fourth straight losing day for the three major averages. Week to date, the Dow is on pace for a 2.5% decline, while the S&P 500 and Nasdaq are heading for 1.6% losses. Asia-Pacific markets fell in early trade Friday, with South Korea's Kospi shedding 2.7% and Japan's Nikkei 225 losing 2.6%. Australia's S&P/ASX 200 was 1% lower. Stocks were weighed down by surging oil prices, as West Texas Intermediate crude futures jumped over $100 per barrel, and both U.S. oil and international Brent crude posted their highest settlement prices since May 19 amid the ongoing U.S.-Iran conflict. The 10-year note yield topped 4.95%, hitting the highest level since October 2023. Traders also weighed August's producer price index (PPI), which rose 0.4% month-over-month and 5.4% annually. All eyes are now on the August CPI report due Friday. Economists polled by Dow Jones expect a 0.4% monthly increase and an annual rate of 3.4%. Fed funds futures trading suggests a roughly 71% likelihood of a rate hike, according to the CME Group's FedWatch tool. "A reading in line with consensus would represent the fourth consecutive month of encouraging inflation readings and ease pressure for a hike," said Christopher Hodge, chief economist of the U.S. at Natixis CIB Americas. "If inflation comes in hotter than consensus, we expect a hike at next week's meeting."