US stock index futures steady, CPI data in focus By Investing.com

Investing.com– U.S. stock index futures were little changed in late trading on Wednesday, as investors braced ahead of key consumer inflation data that is likely to weigh on the outlook for interest rates.

Futures steadied after a positive session on Wall Street, with the Dow hitting record highs after minutes of the Federal Reserve’s September meeting showed a substantial number of policymakers backed a 50 basis point cut.

But the minutes also showed that policymakers are not committing to any particular pace of cuts going forward, keeping investors nervous about how far rates will fall this year.

settled at 5,840.0 points, while remaining steady at 20,457.25 points by 19:17 ET (23:17 GMT). they remained unchanged at 42,830.0 points.

Expected CPI data for several rate indices

The focus has now turned to data ahead on Thursday for more clues on inflation and interest rates.

The reading is expected to show a slight decline in CPI inflation, while core CPI – which excludes volatile food and energy prices – is expected to remain steady. Persistent inflation gives the Fed less impetus to cut interest rates at a rapid pace.

That notion was boosted by last week’s strong payrolls data, which canceled out bets for another 50bps cut in November.

Traders priced in a 75.5% chance of a 25bps cut and a 24.5% chance of a hold in November.

However, the strength of the labor market and sticky inflation point to some resilience in the US economy, diminishing the prospect of a recession in the coming months. That notion supported Wall Street, with economically sensitive sectors posting strong gains.

On Wednesday, it rose 0.7 percent to 5,792.04 points, while it rose 1 percent to 42,512.0 points – a record close. It increased by 0.6% to 18,291.82 points.

The T3 earnings season is about to begin

This week also focuses on the third quarter earnings season, with a number of major banks due to report on Friday.

JPMorgan Chase & Co. (NYSE:), Wells Fargo & Company (NYSE: ) and Bank of New York Mellon (NYSE: ) are scheduled to report third-quarter earnings on Friday, while Goldman Sachs Group Inc (NYSE: ), Bank of America Corp (NYSE: ) and City Group Inc (NYSE: ) will report earnings next week.

Earnings from Johnson & Johnson (NYSE: ), Unitedhealth Group (NYSE: ) and Walgreens Boots Alliance Inc (NASDAQ: ) are also due early next week.