Stocks Rise Pre-Bell Ahead of PPI Data, Fed Chair Warsh's Testimony
The main US stock measures were trending higher in Wednesday's premarket activity as traders await the latest data on wholesale prices, Federal Reserve Chair Kevin Warsh's testimony and another batch of earnings. The S&P 500 and the Dow Jones Industrial Average increased 0.2% each before the opening bell, while the Nasdaq added 0.5%. The indexes finished the previous trading session higher. Last month's producer price index, a measure of wholesale prices, is scheduled to be released at 8:30 am ET. The report comes a day after government data showed that consumer inflation declined in June, its first monthly drop since May 2020 and the largest decrease since April 2020, amid lower energy costs. "Investors and the (Fed) will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO Chief US Economist Scott Anderson said in a Tuesday note. There's an 86% likelihood that the Fed will keep its monetary policy unchanged later this month, up from 84% on Tuesday, according to the CME FedWatch tool. The odds of a 25-basis-point rate increase moved down to 14% from 16%. Warsh.
The main US stock measures were trending higher in Wednesday's premarket activity as traders await the latest data on wholesale prices, Federal Reserve Chair Kevin Warsh's testimony and another batch of earnings.
The S&P 500 and the Dow Jones Industrial Average increased 0.2% each before the opening bell, while the Nasdaq added 0.5%.
The indexes finished the previous trading session higher.
Last month's producer price index, a measure of wholesale prices, is scheduled to be released at 8:30 am ET.
The report comes a day after government data showed that consumer inflation declined in June, its first monthly drop since May 2020 and the largest decrease since April 2020, amid lower energy costs. "Investors and the (Fed) will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO Chief US Economist Scott Anderson said in a Tuesday note.
There's an 86% likelihood that the Fed will keep its monetary policy unchanged later this month, up from 84% on Tuesday, according to the CME FedWatch tool.
The odds of a 25-basis-point rate increase moved down to 14% from 16%.
Warsh.