US stock futures steady with Fed, inflation in focus By Investing.com

Investing.com– U.S. stock index futures were little changed in late trading on Tuesday, with investors averse to big trades ahead of more interest rate signals from the Federal Reserve and key inflation data.

Futures steadied after a positive tech-led session on Wall Street, although most other sectors lagged on Tuesday. Investors remained jittery over continued tensions in the Middle East, while cheers for more Chinese stimulus dried up.

fell slightly to 5,798.25 points, while it was down 0.1 percent at 20,286.50 points by 19:11 ET (23:11 GMT). settled at 42,378.0 points.

Power minutes, CPI data on tap

Markets were now waiting for more clues on US interest rates amid growing doubts about the Fed’s plans to cut rates further in the coming months.

The Fed’s September meeting is scheduled for later on Wednesday, with several Fed officials set to speak.

Strong payrolls data released last week raised doubts about how much momentum the Fed has to keep interest rate cuts on pace. Traders were seen pricing in an 81.1% chance of a 25-basis-point discount in November, with 18.9% chance odds will remain unchanged, according to .

The Fed cut rates by 50 bps in September and future cuts signaled will still depend on inflation and the labor market.

Inflation data is due on Thursday and will factor into the Fed’s outlook.

Wall Street buoyed by tech as Nvidia rallies

Wall Street indices rose on Tuesday, supported mainly by technology indexes, while market darling NVIDIA Corporation (NASDAQ: ) rose 4%. The stock edged lower in aftermarket trade.

On Tuesday, it rose 1 percent to 5,751.13 points, while it rose 1.4 percent to 18,182.34 points, recovering most of Monday’s losses. It rose by 0.3% to 42,080.37 points.

This week also focuses on the start of the third quarter earnings season, with a number of major banks due to report earnings on Friday. Markets will be watching to see if corporate profits have been able to escape the pressure of high rates and sticky inflation.