Stock futures were little changed on Wednesday morning as Wall Street looked ahead to the producer price index.
Futures tied to the Dow Jones Industrial Average were lower by 18 points, or 0.05%, while those tied to the S&P 500 were flat. Nasdaq-100 futures inched up 0.1%.
Stocks are coming off a winning session as Treasury yields eased from their recent highs and Wall Street weighed the ripple effects from the Israel-Hamas war. The 30-stock Dow added 0.40%, while the S&P 500 gained 0.52% and the tech-heavy Nasdaq Composite jumped 0.58%.
Meanwhile, the yield on the benchmark 10-year Treasury yield fell nearly 13 basis points to about 4.65%.
“If rates continue to move lower, I think that will be the primary driver of a reasonable rebound in the equity market,” Lauren Goodwin, director of portfolio strategy at New York Life Investments said on CNBC’s “Closing Bell” on Tuesday.
“It’s also about supply and demand dynamics,” she added. “These past couple of days, we’ve had a little bit of relief from Fed narratives and also a little bit of risk mitigating type of buying. But Treasury supply is still overwhelming, we expect it to remain that way.”
Investors continue to assess the ongoing war unfolding in the Middle East after the militant group Hamas launched an attack on Israeli civilians in what marked the deadliest offensive the country’s experienced in 50 years. President Joe Biden condemned the Hamas attacks as terrorism in remarks Tuesday and said that the United States stands with Israel.
Wall Street will get another clue into the state of inflation Wednesday with September’s producer price index report. Economists expect that the PPI gained 0.3% last month, according to Dow Jones. In addition, minutes from the Federal Reserve’s latest meeting due in the afternoon will offer further insight into the central bank’s hiking cycle after it chose to skip an interest rate increase last month.
Traders are also looking ahead to Thursday’s consumer price index report for September.
