U.S. stock futures showed mixed movements on Wednesday as traders reacted to a cooler-than-expected inflation report. While the report had initially lifted tech shares in day trading, futures for major indices saw declines.
Futures linked to the Dow Jones Industrial Average (YM=F) dropped by 0.4%, and the S&P 500 (ES=F) fell by 0.6%. The tech-heavy Nasdaq Composite (NQ=F) experienced the steepest drop, falling by 1%.
Inflation Data Offers Some Relief, but Political Tensions Remain
Although Wednesday’s Consumer Price Index (CPI) report alleviated concerns over the U.S. economy, political uncertainty continues to cloud the outlook. President Donald Trump’s ongoing trade war has intensified, with the European Union and Canada announcing retaliatory tariffs in response to U.S. steel and aluminum duties. Trump has warned of further actions, which may worsen market sentiment.
In Washington, political negotiations are also causing anxiety. Senate Democratic leader Chuck Schumer announced late Wednesday that his party would block a Republican spending bill designed to avoid a government shutdown set for this weekend.
What’s Next for Inflation?
As investors await further signals on inflation, all eyes will turn to Thursday’s release of the Producer Price Index (PPI) for more insight into the state of the economy. The market’s reaction to the report will be closely watched as it could influence the next steps for U.S. monetary policy.
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