U.S. stock futures pointed higher before Wednesday’s open, led by technology, as investors looked past Tuesday’s inflation scare and cheered strong results from AI cloud provider CoreWeave. As of about 6:15 a.m. ET, Nasdaq 100 futures were up 1.52%, S&P 500 futures gained 0.65% and Dow futures were up 0.07%, according to TipRanks. Kaohoon International reported similar gains in overnight trading.
Wednesday is Veterans Day. The stock market is open, but the U.S. bond market is closed on the recommendation of the industry group SIFMA, according to the Vanderbilt Report and Gotrade.
Tuesday’s close: inflation stalls the rebound
Stocks gave back part of Monday’s big rally after the October consumer price index came in hotter than expected. Headline CPI rose 0.4% for the month against a 0.3% forecast, and core CPI, which excludes food and energy, rose 0.3% versus 0.2% expected, according to TheStreet and Eurasia Business News. Core prices have now risen 0.3% for three straight months, StockTitan noted.
- S&P 500: down 0.38% to 7,520.93
- Dow Jones Industrial Average: down 0.30% to 52,231.89
- Nasdaq Composite: down 0.74% to 25,065.88
- Russell 2000: down 0.68% to 2,821.38
Technology was the weakest sector, falling 1.13%, while financials, energy and communication services gained, according to TheStreet. Nvidia closed down 5.47%, StockTitan reported, as concerns about a controversy involving CEO Jensen Huang weighed on the chipmaker and the broader market.
Yields jump on rate-hike bets
The bond market took the inflation report hard. The 10-year Treasury yield rose about 10 basis points to roughly 4.98% after briefly topping 5%, and the two-year yield jumped about 17 basis points to 4.73%, according to Capp Notes and Trading and Investment News, citing Reuters and Investing.com. Fed Governor Christopher Waller said a half-point hike in December should be on the table if inflation stays hot, and traders now see a December rate increase as nearly certain. CME FedWatch showed roughly 88% odds of a quarter-point move and about 11% odds of a half-point move, per Capp Notes.
What is moving premarket
- CoreWeave: Shares rose in extended trading after third-quarter revenue jumped 168% to $3.66 billion and the company raised its full-year outlook.
- Nvidia: Up about 3.4% in premarket trading, according to Kaohoon International, after Tuesday’s slide.
- GoPro: Down more than 10% premarket after delaying its quarterly report, according to Stocktwits on Yahoo Finance.
- Rigetti Computing: Lower after quarterly revenue fell well short of estimates.
Commodities were mixed. Oil extended its slide toward the lowest levels since late summer, with West Texas Intermediate settling at $86.04 on Tuesday, according to Eurasia Business News. Gold futures fell about 2% to $4,030.20, per Capp Notes, as the dollar and yields climbed.
On the calendar
There are no major economic releases Wednesday. Franco-Nevada reports after the close. Thursday brings weekly jobless claims at 8:30 a.m. ET, a 30-year bond auction, and earnings from Cisco and Applied Materials after the bell. October producer prices follow Friday morning. With rate-hike odds climbing, investors will watch whether the AI rebound can hold up against yields near 5%.
