How are stock-index futures trading:
S&P 500 futures are down 0.2%.
Dow Jones Industrial Average futures are falling 0.1%.
Nasdaq 100 futures are retreating 0.2%.
On Wednesday, the Dow Jones Industrial Average rose 432 points, or 1.03%, to 42,512, the S&P 500 increased 41 points, or 0.71%, to 5,792, and the Nasdaq Composite gained 109 points, or 0.6%, to 18,292.
Futures indicate a slightly lower open for U.S. stock barometers, though that may all change depending on the consumer price index report for September, due for release at 8:30 a.m.
The S&P 500 and Dow Jones Industrial Average finished the previous day at their respective 44th and 35th record closing highs, helped partly by investors assuming that the ongoing disinflation trend will allow the Federal Reserve to continue cutting borrowing costs.
That likely means traders will be rattled should CPI inflation come in hotter than expected, concerned “that the Fed may have declared victory over inflation prematurely,” says Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“Therefore, if today’s data isn’t soft enough, we could see the U.S. yields and the dollar extend gains, and the major U.S. indices refuse to [hit a new] record,” she adds.
Meanwhile, investors will also be eyeing bank earnings on Friday, hoping for evidence the recent rally can be justified.
“The end of the week will herald the onset of the quarterly reporting season, where expectations are that corporates will have seen the benefit of what is proving to be a robust and growing economy despite the handcuffs of higher interest rates over the last few years,” says Richard Hunter, head of markets at Interactive Investor.