U.S. Stock Index Futures

U.S. stock index futures moved little in evening deals on Tuesday, with investors turning averse to big trades ahead of signals on interest rates from the Federal Reserve and key inflation data.

Futures steadied following a positive, tech-driven session on Wall Street, although most other sectors lagged. Investors remained on edge over ongoing tensions in the Middle East, while enthusiasm for additional stimulus measures in China waned.

• S&P 500 Futures fell slightly to 5,798.25 points.
• Nasdaq 100 Futures dropped 0.1% to 20,286.50 points by 19:11 ET (23:11 GMT).
• Dow Jones Futures steadied at 42,378.0 points.

Fed Minutes, CPI Data on Tap

Markets are now awaiting more cues on U.S. interest rates amid growing doubts over the Fed’s plans to further cut rates in the coming months.

The minutes of the Fed’s September meeting are due later on Wednesday, with several Fed officials expected to speak. Strong payrolls data released last week raised doubts about the necessity for the Fed to continue cutting rates rapidly. Traders were pricing in an 81.1% chance for a 25 basis point reduction in November and an 18.9% chance that rates will remain unchanged, according to CME Fedwatch.

The Fed cut rates by 50 bps in September, signaling that future cuts will still be contingent on inflation and the labor market. Consumer price index inflation data is expected on Thursday and will likely impact the Fed’s outlook.

Wall Street Buoyed by Tech as Nvidia Rallies

Wall Street indexes rose on Tuesday, primarily powered by technology, as market favorite NVIDIA Corporation (NASDAQ:NVDA) surged 4%. The stock fell in aftermarket trade.

The S&P 500 rose 1% to 5,751.13 points on Tuesday, while the NASDAQ Composite gained 1.4% to 18,182.34 points, recovering most of Monday’s losses. The Dow Jones Industrial Average increased 0.3% to 42,080.37 points.

This week also marks the start of the third-quarter earnings season, with major banks reporting earnings on Friday. Markets will be keen to see if corporate profits can overcome the pressures of high rates and persistent inflation.