Futures tick decrease as inflation worries hit CPI information

© Reuters. FILE PHOTO: Traders work the floor of the New York Stock Exchange (NYSE) in New York City, United States on October 20, 2021. REUTERS / Brendan McDermid

By Shreyashi Sanyal

(Reuters) – Wall Street stock futures were down on Wednesday as signs of rising inflation around the world dampened investor sentiment ahead of the US consumer price data release.

The Department of Labor's consumer price index (CPI) matures at 8:30 a.m. ET and is expected to rise 5.8% in October, after rising 5.4% the previous month.

Coming a day after producer price data showed a solid spike in October, the report examines the extent to which manufacturers passed higher costs on to consumers, who spend 70% of the US economy.

Wall Street major indices ended their long streak of record closing highs on Tuesday as investors took gains from the recent surge in earnings, especially in the absence of market-moving catalysts.

The declines on Wednesday came after data showed Chinese factory prices hit a 26-year high in October, while economic advisers to the German government said they expect the current surge in inflation to continue well into 2022.

The losses were broad. Major lenders, including JPMorgan Chase & Co (NYSE :), Morgan Stanley (NYSE 🙂 and Goldman Sachs (NYSE 🙂 each fell about 0.3% in pre-trading hours.

Large industrial and energy companies like Caterpillar Inc (NYSE :), 3M Co, and Chevron (NYSE 🙂 Inc lost between 0.3% and 0.4%.

Mega-cap technology and communications companies including Apple Inc (NASDAQ :), Microsoft Corporation (NASDAQ :), Inc (NASDAQ :), Meta Platforms Inc, formerly known as Facebook (NASDAQ :), and Alphabet (NASDAQ 🙂 Inc fell between 0.4% and 0.9%.

But shares of Tesla (NASDAQ 🙂 Inc rose 0.1% and stabilized after a two-day sell-off that saw the electric vehicle maker drop as much as $ 200 billion in market cap.

At 6:44 p.m. ET, they were down 90 points or 0.25%, down 16.25 points or 0.35%, and 95.75 points or 0.59%.

Investors also looked forward to the release of the weekly unemployment claims data, which will likely show that fewer Americans opted for government unemployment benefits last week.

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