Stock Market Live Updates: US Stock Futures Rise After Inflation Data Matches Expectations
US stock futures rise slightly as inflation data meets expectations. Traders are watching for potential Federal Reserve rate cuts. Read the latest updates
US stock futures saw a slight uptick on Wednesday as investors reviewed recent data on consumer prices, which is expected to influence the Federal Reserve's interest rate decisions. Futures for the S&P 500 and Nasdaq climbed about 0.2%, while those for the Dow Jones Industrial Average remained steady.
The Consumer Price Index (CPI) for July showed that consumer prices increased by 2.9% from a year ago. This is the first time since 2021 that the overall inflation rate has dropped below 3%. The "core" CPI, which excludes food and energy costs, rose by 3.2% year-over-year. Both of these figures were consistent with Wall Street's expectations.
On Tuesday, the stock market saw gains due to the positive inflation data, which suggested that consumer prices might continue on a similar path. The Producer Price Index (PPI), which measures the changes in wholesale prices, increased by 2.2% compared to last year, nearly matching the Federal Reserve's target of 2% inflation.
Also Read: Stock Markets Close Quietly After Volatile Week Amid Global Economic Uncertainty
These inflation reports indicate that the Federal Reserve might be inclined to lower interest rates soon. Even those Fed members who usually prefer higher rates are hinting that they could support a rate cut if more favorable data is observed. If inflation continues to ease and the job market slows, the Fed might reduce rates in its September meeting.
Traders are generally predicting a rate cut next month, though there is some debate about its size. More than half are betting on a 50 basis point reduction, while the remainder expect a smaller 25-point cut.
This news has sparked optimism on Wall Street as investors closely monitor the Federal Reserve’s next steps in response to the latest economic indicators.
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14 Aug 2024 09:09 AM
July Inflation Falls Short of Expectations, Boosting Hopes for Rate CutsInflation for July increased less than expected, as investors anticipate the Federal Reserve might lower interest rates. The Consumer Price Index (CPI) showed a 0.2% rise from the previous month, up from a 0.1% decline in June. Over the past year, prices rose by 2.9%, down from 3% in June. This is the first time since March 2021 that annual inflation has been below 3%.
Economists had predicted a 0.2% monthly increase and a 3% annual rise.
When excluding food and energy, "core" inflation fell to 3.2% annually, down from 3.3% the previous month, matching economists' forecasts. On a monthly basis, core inflation increased by 0.2%, slightly higher than June’s 0.1% rise.
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14 Aug 2024 09:38 AM
Stocks Rise as Inflation Data Hints at Potential Fed Rate Cut
Stocks started the day on a positive note after inflation data came in close to Wall Street's predictions, suggesting progress in managing price increases. This data hints that the Federal Reserve might lower interest rates next month.
The S&P 500 and Nasdaq Composite saw small gains of about 0.2%, while the Dow Jones Industrial Average stayed nearly unchanged.
The inflation numbers indicate that prices are stabilizing, which has lifted investor confidence about possible changes in interest rates. Market watchers are keenly awaiting any updates from the Federal Reserve regarding future rate cuts.
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14 Aug 2024 10:57 AM
Mars to Buy Pringles Maker Kellanova in $36 Billion Deal, Shares Soar
Mars, the company known for brands like Skittles, M&M's, and Twix, has announced its plan to buy Kellanova, the maker of Pringles, for nearly $36 billion. This purchase is one of the largest in the packaged food industry.
Mars will pay $83.50 per share for Kellanova, offering a premium of over 30% compared to earlier this month when talks of the deal were first reported. The announcement has already led to an 8% rise in Kellanova's stock during morning trading.
After the deal is finalized, Kellanova will join Mars Snacking. The combined businesses are expected to greatly expand Mars' presence in the snack market, with the goal of doubling the size of their snacking division.
The Kellanova brands will help us grow our Snacking platform, better meet customer needs, and drive profitable growth," said Andrew Clarke, global president of Mars Snacking.
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14 Aug 2024 11:19 AM
Alphabet Shares Decline as US Considers Splitting Up Google
Alphabet, the parent company of Google, saw its shares drop by over 3% on Wednesday amid reports that the US Justice Department is considering a proposal to break up the tech giant.
This news follows a recent court decision where a judge ruled that Google’s search and advertising operations had breached antitrust laws. The decision sided with the US Justice Department and several states, which argued that Google had leveraged its dominant position in the online search market unfairly.
In response to the ruling, Google announced plans to appeal, but the judge has asked both sides to suggest ways to resolve the antitrust issues. If the proposed breakup goes ahead, Google could be forced to separate key divisions, including its Android operating system and Chrome browser.
The increased scrutiny on Google is part of a larger initiative by the Biden administration to address what it views as anticompetitive practices across various sectors, including technology, healthcare, and retail.
