Stock futures rise ahead of key inflation data, Fed minutes

Stock futures rose on Wednesday as investors awaited the latest inflation figures and minutes from the Federal Reserve’s latest meeting.

Dow Jones Industrial Average futures added 208 points, or 0.7%. S&P 500 and Nasdaq 100 futures rose 0.9% and 1% respectively.

The moves came after the S&P 500 and Nasdaq Composite fell 0.65% and 1.1%, respectively, to post their fifth straight day of declines. The Dow ended the day on a higher note, up about 36 points, but gave up most of its gains from a rally earlier in the session.

Stocks fell from their highs and bond yields rose, as the Bank of England said its intervention in the market would soon be over and pension funds had just three days to rebalance their positions.

Investors are eagerly awaiting the September Producer Price Index, a wholesale final demand price indicator, due out Wednesday from the Bureau of Labor Statistics. Economists polled by Dow Jones expect the overall PPI to rise 0.2%, after falling 0.1% the previous month.

Minutes from the Federal Reserve’s September meeting will also be released on Wednesday. Although Fed Chairman Jerome Powell has acknowledged that aggressive interest rate hikes could be painful, the central bank will continue to push forward in its fight to reduce inflation.

“Powell repeated, in what has become his mantra, that without price stability we cannot have a strong economy or a strong labor market,” said Quincy Krosby, chief global strategist for LPL Financial. “Investors fear that tight monetary policy, i.e. tighter financial conditions, could lead to the kind of financial crash that dries up liquidity and further hurts the global economy.”

Elsewhere, PepsiCo will release quarterly results before the bell on Wednesday. Bank earnings will start later in the week. Despite lower expectations, S&P 500 earnings are expected to rise further.

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