U.S. stock futures edged higher Wednesday, as investors awaited the release of key inflation data that could provide clues about the pace of future interest rate hikes from the Federal Reserve.
The Dow Jones Industrial Average futures were up 0.1%, while the S&P 500 futures were up 0.2% and the Nasdaq 100 futures were up 0.3%.
The June consumer price index (CPI) is due to be released at 8:30 a.m. ET. Economists expect the CPI to rise by 3.1% year-over-year, which would be the slowest annual increase since March 2021.
A slowdown in inflation would be a welcome sign for the Fed, which is trying to cool the economy without causing a recession. However, if inflation remains elevated, the Fed may be forced to raise interest rates more aggressively.
In other economic news, the U.S. economy added 372,000 jobs in June, according to a report released by the Labor Department on Tuesday.
The unemployment rate remained unchanged at 3.6%.
The strong job growth suggests that the economy is still growing at a healthy pace. However, rising wages and inflation are starting to put a strain on household budgets.
The Federal Reserve is expected to raise interest rates by 0.75 percentage points at its meeting later this month.
The central bank is trying to cool inflation without causing a recession.
Investors will be closely watching the June CPI report to see if it provides any clues about the pace of future interest rate hikes.
The stock market has been volatile in recent months as investors have tried to assess the impact of rising inflation on the economy.
The S&P 500 is down about 10% year-to-date.
If the June CPI report shows that inflation is still rising, it could lead to more volatility in the stock market.
However, if the report shows that inflation is starting to cool, it could provide some relief to investors and could help to stabilize the stock market.
The Federal Reserve is facing a difficult balancing act as it tries to cool inflation without causing a recession.
If the Fed raises interest rates too aggressively, it could lead to a recession.
However, if the Fed doesn’t raise interest rates enough, it could lead to higher inflation, which could also damage the economy.
The June CPI report will be an important piece of data for the Fed as it makes decisions about interest rates.
The report will be released at 8:30 a.m. ET on Wednesday.
Here are some additional details about the June CPI report:
The June CPI report is likely to be closely watched by investors, economists, and policymakers.
The report will provide an update on the state of inflation in the United States and could give us some clues about the future path of interest rates.
I hope this is helpful! Let me know if you have any other questions.
Here are some additional thoughts on the implications of the June CPI report:
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