Following yesterday's unremarkable session, there are indications that stocks might witness a decline in early trading on Wednesday. Futures for major indices, including the S&P 500, which is down by 0.3 percent, are suggesting a lower start for the markets.
Traders may be poised to capitalize on recent market upturns before the impending release of key consumer price inflation figures on Thursday. These figures greatly influence the Federal Reserve's decisions, and they are projected to exhibit a slowdown in the annual rate of consumer price growth from 2.6 percent in December to 2.4 percent in January.
Similarly, the annual growth rate of core consumer prices (excluding food and energy) for January is estimated to decelerate to 2.8 percent, down from 2.9 percent in December. Given the Fed's insistence on seeing reduced inflation rates before considering any adjustments in interest rates, these data could significantly affect future rate projections.
The Commerce Department's revised data for the fourth quarter of 2023 suggest that the growth of the U.S. economy during this period was marginally lower than initially estimated. The real gross domestic product's (GDP) increase for this period was revised down to 3.2 percent from the previously reported 3.3 percent.
On the other hand, the fourth quarter saw slight upwards revisions in consumer prices to 1.8 percent from 1.7 percent and core prices to 2.1 percent from 2.0 percent.
After Monday's moderate downturn in stocks, Tuesday's trading day experienced fluctuations. Major averages alternated between gains and losses, culminating in a mixed close. The Nasdaq and the S&P 500 climbed by 0.4 percent and 0.2 percent, respectively, while the Dow dipped by 0.3 percent.
During Wednesday's trading, the vast majority of Asia-Pacific stock markets took a downward turn, with Japan's Nikkei 225 Index dipping by 0.1 percent and China's Shanghai Composite Index losing 1.9 percent.
European markets, however, displayed mixed behaviors. While the French CAC 40 Index hovered just below the breakeven line and the UK's FTSE 100 Index fell by 0.7 percent, the German DAX Index rose by 0.2 percent.
In the commodities market, crude oil futures are slightly down at $78.78 a barrel after Tuesday's $1.29 surge to $78.87 a barrel. Gold is trading at $2,041.90 an ounce, down $2.20 from the previous session's close.
On the currency front, the U.S. dollar is trading at 150.61 yen, a slight increase from the previous close in New York, and against the euro, the dollar value stands at $1.0815, compared to yesterday's $1.0844.
