Stock futures traded flat Wednesday as investors weighed price data that came in higher than expected, signaling more interest rate hikes are ahead as the Federal Reserve looks to tame high inflation.
Futures tied to the Dow Jones Industrial Average added 47 points, or 0.16%. S&P 500 futures and Nasdaq 100 futures were up 0.26% and 0.35%, respectively.
Stock futures pared gains from earlier in the morning when the September producer price index, a gauge of final-demand wholesale prices, came in higher than expected. The print was up 0.4% in September, more than the consensus estimate of a 0.2% increase, according to Dow Jones.
The PPI number is one of the inflation gauges investors are watching alongside the Federal Reserve. If inflation continues to be high, the central bank is more likely to continue its aggressive path of interest rate hikes to bring it back into check. That means rates will continue to rise and my stay high for longer than markets expect, weighing on stocks.
Investors will get more inflation data on Thursday, when the September consumer price index report is released. The CPI number is a measure of price changes in a basket of common consumer goods and services.
The minutes from the Federal Reserve’s September meeting will also be released Wednesday. While Fed Chairman Jerome Powell has acknowledged that aggressive interest rate increases could be painful, the central bank will continue to charge forward in its fight to lower inflation.
“Powell has…
