The Market Brief
Hey team. U.S. equity futures contracts remained within narrow ranges as traders awaited a key inflation report for clues on the outlook for interest rate cuts.
Let’s re-cap Tuesday’s session and see what’s next!
Impact Snapshot
🟥 U.S. CPI Inflation - 8:30am
🟥 Fed Chair Powell Testifies - 10:00am
Macro Viewpoint
U.S. stock index futures traded mixed early Wednesday as investors exercised caution ahead of a key inflation report that could shape the Federal Reserve's interest rate decisions for the year.
A day earlier, Fed Chair Jerome Powell reaffirmed that the central bank is in no hurry to lower short-term interest rates but avoided addressing the potential effects of President Donald Trump's recent tariff policies.
The January consumer price index (CPI) report, set for release at 8:30 a.m. ET, is expected to show a 0.3% monthly increase, with annual inflation holding steady at 2.9%.
This inflation reading will be the last before any direct impact from Trump's tariffs, which took effect this month. Powell is also scheduled to continue his congressional testimony shortly after the CPI data is published.
