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(Reuters) – U.S. stock index futures dipped on Wednesday as investors awaited a key reading on inflation to see whether the Federal Reserve’s efforts were successful in cooling rising prices.
The Consumer Price Index (CPI) is expected to have risen 0.4% last month after gaining 0.1% in March, while the so-called core CPI (excluding volatile food and energy components) is expected to remain at 0.4% in April from the prior month.
The Labor Department report will be released at 0830 ET (1230 GMT). “If CPI comes in hot, coupled with a stable market, decent earnings and stable jobs, it may not look good for the Fed’s future actions,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs.
“The direction of rates seems to depend on economic data again, the quasi-banking crisis and liquidity crunch hasn’t yet been an active factor that changes Fed course.”
The odds favoring a rate cut anytime soon fell after a strong U.S. payrolls report on Friday, with traders now expecting the central bank to hold rates at 5-5.25% till at least July.
Large-cap technology stocks, including Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT), dipped about 0.4% each in premarket trading.
Yields on short-dated U.S. Treasury bills rose after discussions in Washington over raising the U.S. debt ceiling continued. [US/]
At 6:51 a.m. ET, Dow e-minis were down 62 points, or 0.18%, S&P 500 e-minis were down 7.25 points, or 0.18%, and Nasdaq 100 e-minis were down 25.25 points, or 0.19%.
Shares of regional banks were largely mixed after a few volatile sessions from last week amid concerns about the health of the sector. PacWest Bancorp fell 2.5%, while Zions Bancorporation (NASDAQ:ZION) and Western Alliance (NYSE:WAL) Bank inched up 0.7% and 0.6%, respectively.
Oil and gas producer Occidental Petroleum Corp (NYSE:OXY) fell 1.5% after its first-quarter earnings fell short of analysts’ estimates.
Livent (NYSE:LTHM) Corp reversed earlier gains to trade 1.6% lower after Australian lithium miner Allkem Ltd agreed to buy the U.S.-based chemical manufacturing firm to create a $10.6 billion firm.
Airbnb Inc lost 13.5% as the vacation rental booking company saw fewer bookings and lower average daily rates in the second quarter.
Graphic: S&P 500 Index – https://www.reuters.com/graphics/INDEX-AUTOMATED/SPX-365-DAYS-20230509/zgvobloedpd/chart_eikon.jpg
