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Wall Street Expected to Open Slightly Lower Ahead of Inflation Data Release
Wall Street is expected to open slightly lower on Wednesday as investors await the release of key inflation data, which may influence the Federal Reserve’s future policy decisions. The release of the Personal Consumer Expenditure (PCE) index, the Federal Reserve’s preferred gauge of underlying inflation, is expected to show a 2.3% annual increase in October, up from 2.1% in the previous month.
US stock futures have edged lower, with the S&P 500, Dow Jones, and Nasdaq all showing slight declines. The market is expected to be subdued, as it is closed on Thanksgiving Day on Thursday and will close early on Friday.
Meanwhile, Citi analysts have warned that tariffs imposed by the US government could significantly hurt S&P 500 earnings, cutting estimates by a few percentage points and eroding gross margins by over 250 basis points. The news comes as President-elect Donald Trump has threatened to impose more duties on imports from China, Canada, and Mexico.
In other news, Apple is facing challenges in China, where the company is struggling to compete with local rivals. The company’s CEO, Tim Cook, has been in Beijing this week to court the Chinese market, where the company assembles many of its devices. Cook’s appearance comes as Apple is grappling with declining iPhone sales in the country.
Crude oil prices have also seen a boost, with the US crude futures and Brent crude prices rising 0.5% and 0.3%, respectively, amid a ceasefire deal between Israel and Hezbollah, as well as an unexpected draw in US oil inventories. The Organization of Petroleum Exporting Countries (OPEC) will meet next week to determine future production plans.
