Stock Futures Hold Flat as June CPI Falls 0.4% and July Rate-Hike Odds Drop to 17%
Updated
Updated · CNBC · Jul 14
Stock Futures Hold Flat as June CPI Falls 0.4% and July Rate-Hike Odds Drop to 17%
3 articles · Updated · CNBC · Jul 14
Summary
Dow, S&P 500 and Nasdaq 100 futures traded near flatline in overnight Tuesday trading after stocks rallied on cooler-than-expected U.S. inflation data.
June CPI fell 0.4% from May and slowed to 3.5% annually, beating forecasts for a 0.2% decline and 3.8% inflation, prompting traders to pare back near-term Fed tightening bets.
CME FedWatch showed the probability of a July rate hike dropping to 17% from 42% a day earlier, though markets still price a 63% chance rates will be higher after the September meeting.
Investors are now shifting to Wednesday earnings from United Airlines, Morgan Stanley, Johnson & Johnson and BlackRock after major banks including JPMorgan, Bank of America and Goldman Sachs beat expectations.