US pre-open: Futures steady as traders await key PCE inflation print, Nvidia earnings

(Sharecast News) - Wall Street futures were little changed ahead of the open on Wednesday as traders looked ahead to key US inflation data and Nvidia's latest quarterly numbers. As of 1225 BST, Dow Jones futures were flat, while S&P 500 and Nasdaq-100 futures had the indices opening 0.04% and 0.08% softer, respectively.

The Dow closed 160.24 points higher on Tuesday as concerns about inflationary pressures eased following subdued economic data and a sharp drop in oil prices.

Wednesday's primary focus will be July's personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, at 1330 BST, with economists expecting to see a 0.1% month‑on‑month rise and a 3.6% annual increase, following June's 0.1% monthly decline and 3.7% year‑on‑year rise. July's PCE reading comes comes as the bond market returned to focus after long‑dated US yields hit multiyear highs last week, including the 30‑year touching levels last seen nearly two decades ago.

Investors were also looking ahead to Federal Reserve chairman Kevin Warsh's upcoming appearance at Jackson Hole on Friday, though economists expect him to keep guidance limited ahead of September's policy decision.

Elsewhere on the macro front, US mortgage applications slipped 1% on the week ended 21 August, according to the Mortgage Bankers Association, extending the prior week's 0.4% decline. The shift reflected only a modest uptick in the average 30‑year mortgage benchmark, which remains close to its highest level in a year. Yields on the 30‑year Treasury have surged to multi‑decade highs amid mounting corporate debt, widening federal deficits and worries that the Federal Reserve has become too complacent on inflation. Applications to refinance a mortgage, which are more sensitive to week-to-week interest rate changes, fell 2% week-on-week, while applications to purchase a home dipped 0.3%.

Still to come, July durable goods orders data will be published at 1330 BST.

In the corporate space, Victoria's Secret and Abercrombie & Fitch were both slated to report earnings before the open, while Nvidia will post its latest quarterly figures after the close.







Reporting by Iain Gilbert at Sharecast.com