Traders work on the floor of the New York Stock Exchange.
Stock futures were flat in overnight trading as Wall Street braced for a key inflation report.
Futures tied to the Dow Jones Industrial Average added 10 points, while S&P 500 futures and Nasdaq-100 futures inched slightly higher.
Another busy earnings day ensued after hours, with Airbnb and Twilio falling more than 10% each on weak forecasts. Electric vehicle maker Rivian popped 5% on a narrower-than-expected loss.
Major averages finished Tuesday’s regular session lower, with the S&P 500 and Nasdaq Composite falling 0.46% and 0.63%, respectively. The Dow Jones Industrial Average declined 0.17%.
Traders continued monitoring the latest updates on the U.S. debt ceiling as worries mount that failing to reach a resolution before the June 1 deadline could lead to default. President Joe Biden held a key meeting with congressional leaders after the bell Tuesday, but comments from leadership on both sides of the aisle indicated that little progress was made.
Investors are bracing for April’s consumer price index due out Wednesday, an important inflation gauge that should offer greater insight into whether the Federal Reserve’s rate hikes are working to ease sticky prices. Analysts polled by Dow Jones are calling for a 0.4% month-over-month increase in inflation and 5% rise from a year ago.
“I think what it’s going to tell us is that the path towards normalization is not linear,” said EP Wealth Advisors’ Adam Phillips of Wednesday’s data release.
Despite visible progress in the inflation fight from multidecade highs, he expects little change in the figure.
“It won’t change our thinking for the Fed,” Phillips said. “The market could respond since they respond to anything that’s inflation-related these days, but when you get down to it, I don’t think it’s necessarily going to change the Fed’s calculus either.”
Earnings season continues Wednesday with results from Disney, Roblox and Robinhood.