Following an upward trend observed in the previous session, stock markets may experience a tentative start to trading on Wednesday. Current futures suggest a relatively stable opening, with the S&P 500 futures slightly down by less than a tenth of a percent.
Investors appear hesitant to take decisive actions ahead of the imminent release of the Federal Reserve's favored consumer price inflation indicators. The personal consumption expenditures (PCE) price index is anticipated to increase by 0.2 percent for the second consecutive month, with yearly growth expected to climb to 2.3 percent in October from September's 2.1 percent.
The core PCE price index, excluding the volatile food and energy sectors, is also projected to rise by 0.3 percent for a second month in a row, while annual growth is predicted to slightly increase to 2.8 percent in October from 2.7 percent the previous month.
These inflation figures will potentially influence interest rate expectations prior to the Federal Reserve's upcoming monetary policy meeting in mid-December. According to CME Group's FedWatch Tool, there is currently a 66.5 percent likelihood that the Fed will decrease rates by 25 basis points next month, with a 33.5 percent chance of maintaining the existing rates.
Futures have remained steady even after key economic data were released before trading began, including a Labor Department report indicating that initial jobless claims unexpectedly decreased in the week ending November 23rd. Additionally, the Commerce Department disclosed that orders for durable goods increased, albeit less than anticipated, in October.
In the early session on Tuesday, the major U.S. stock indexes showed mixed performance but ultimately trended upward throughout the day. The Dow Jones Industrial Average rebounded from early losses to close at a new record high. The Dow, which initially dropped by as much as 0.7 percent, finished 123.74 points higher, or an increase of 0.3 percent, at 44,860.31. The S&P 500 also rose, gaining 34.26 points, or 0.6 percent, to a record high close of 6,021.63, while the Nasdaq surged 119.46 points, or 0.6 percent, reaching 19,174.30.
In international markets, there was a mixed performance seen across Asia-Pacific exchanges on Wednesday. Japan's Nikkei 225 Index fell 0.8 percent, whereas China's Shanghai Composite Index increased by 1.5 percent.
Conversely, major European markets have all experienced declines during the day. The French CAC 40 Index has dropped by 0.9 percent, the German DAX Index by 0.3 percent, and the U.K.'s FTSE 100 Index by 0.1 percent.
In commodities, crude oil futures experienced a rise of $0.31 to settle at $69.08 per barrel after a previous slight dip of $0.17 to $68.77. Meanwhile, gold prices have climbed to $2,676.30 an ounce, marking a $30 increase from the previous session's close of $2,646.30. On Tuesday, the gold price had increased by $3.70.
In currency markets, the U.S. dollar is currently trading at 151.35 yen, down from 153.08 yen at Tuesday's New York close. Against the euro, the dollar is now trading at $1.0549, compared to $1.0489 in the last session.
