Stock futures opened slightly higher on Tuesday evening after falling during the regular trading day, and September selling pressure returned to markets, even after a report showed higher inflation. slower than expected last month.
S&P 500 contracts were marked above the flat line. Dow futures also stabilized after the index lost nearly 300 points during the regular trading day, resuming declines and falling for the sixth time in seven sessions. Apple’s heavy technology (AAPL) shares rose in recent operations after the company unveiled its latest line of new products, including the iPhone 13 and newer versions of the iPad, iPad mini and iPad mini. ‘Apple Watch.
The fall in shares on Tuesday came even after an impression of colder-than-expected inflation for August, which suggested some of the sharp price increases earlier this year were beginning to moderate. -se. The Department of Labor’s Consumer Price Index (CPI), excluding volatile food and energy prices, rose just 0.1% in August compared to July, with a slower monthly rise since February. The core CPI also rose less than expected last year.
However, the main contributors to the fall were falling prices such as air fares and hotel rooms, which were probably only temporarily reduced due to renewed concerns about the Delta variant. However, the slower-than-expected rise in consumer prices helps to vindicate the views of some Federal Reserve officials that inflation will eventually be transitory and offers more room for officials to keep up. current monetary policies for longer, according to some experts.
“We probably won’t get the answer to whether or not it’s transitory until 2022 – that’s when the basic effects will start to fade and all the distortions will start to resolve,” Sameer Samana, global researcher at Wells Fargo Investment Institute market strategist, He told Yahoo Finance on Tuesday.
“What it tells us today is that the Fed probably has a little more room to move,” he added. “If they don’t want to do something at next week’s meeting, given the weaker than expected [August] the number of payrolls, the current inflation rate, is also putting pressure on them to do something next week. ”
Still, investors continue to assess a large number of risks to the economic and equity outlook, and price pressures only serve as a concern. And with US equities relatively close to all-time highs and the S&P 500 still at more than 18% so far this year, concerns about the fundamental fund have only intensified.
“I think we’ll see a bit of an air pocket of concern for some of the companies coming at the end of the year,” Chris Retzler, Needham’s capitalization growth fund portfolio manager, told Yahoo Finance. Semiconductors are a problem in almost every industry and labor costs remain a problem. But looking at a year away from home, I think these issues are starting to subside and that’s good for long-term investors. ”
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Tuesday at 6:10 pm ET: Futures on stocks are marked
These were the main movements in the markets from Tuesday evening:
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Futures S&P 500 (ES = F): +4 points (+ 0.09%) to 4,448.50
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Dow futures (YM = F): +21 points (+ 0.06%) to 34,604.00
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Nasdaq Futures (NQ = F): +15 points (+ 0.1%) to 15,402.00
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Emily McCormick is a Yahoo Finance reporter. Follow her on Twitter: @emily_mcck