The Market Brief
Hey team. U.S. stock futures extended their overnight losses as traders weighed an unexpected uptick in consumer prices for September.
Let’s recap Wednesday’s session and see what’s next!
Impact Snapshot
U.S. consumer prices rose slightly more than forecast in September
Jobless claims surge to highest level in more than a year
Macro Viewpoint
Stock index futures deepened their losses on Thursday following data that revealed U.S. inflation was higher than anticipated in September, raising the likelihood of fewer interest rate cuts later this year.
The outcome will guide the Federal Reserve's next policy decisions as it prepares for its first meeting following September's significant 50 basis point rate cut.
Elevated inflation alongside a weakening labor market signals the risk of stagflation, where rising prices and sluggish growth coexist.
This scenario poses a challenge for policymakers, as managing one issue may worsen the other.