Good morning traders!
The S&P 500 ($SPY) is trading below yesterday’s close. Let’s get into it…
US stock futures trade higher this morning, after new data released showed U.S. inflation grew at a slightly slower rate than anticipated in July, suggesting a potential decline in economic pressures. This could influence the Federal Reserve to reconsider its ongoing pattern of raising interest rates. The consumer price index (CPI) for the month remained at 0.2%, aligning with predictions, and exhibited a yearly rise of 3.2% — a slight increase from 3.0% in June, though lower than the anticipated 3.3%. The core CPI, excluding fluctuating items like food and energy, remained at 0.2% for the month and 4.7% annually, which was below the expected 4.8%. The Fed, aiming to manage inflation and stabilize the job market, recently increased borrowing rates by 0.25%, emphasizing that upcoming decisions will be based on economic data.
In the news, President Biden signed an executive order yesterday to oversee U.S. investments in sensitive technologies, including semiconductors, microelectronics, quantum computing, and AI, especially in countries deemed concerning. The White House emphasized this measure empowers the Treasury Secretary to regulate investments into these sectors, which are vital for national security. Biden expressed the urgency of such regulations, stressing the need to shield the U.S. from technological threats and prevent aiding adversaries in developing counter capabilities.
Thursday Economic Events:
CPI 8:30am ET – High Volatility Expected
Initial Jobless Claims 8:30am ET – High Volatility Expected
EIA Natural Gas Report 10:30am ET
Treasury Statement 2:00pm ET
Fed Speaker Scheduled:
Patrick Harker 3:00 pm ET
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