(RTTNews) - Stocks are likely to move to the upside in early trading on Wednesday, regaining ground after moving mostly lower over the course of the previous sessions. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.
The futures climbed more firmly into positive territory following the release of a closely watched Labor Department report showing consumer prices crept up in line with economist estimates in the month of July.
The Labor Department said consumer prices inched up by 0.1 percent in July after falling by 0.4 percent in June. The uptick in consumer prices matched economist estimates.
The report also said core consumer prices, which exclude food and energy prices, rose by 0.2 percent in July after coming in unchanged in June. The increase in core prices also matched expectations.
The annual rate of growth by consumer prices edged down to 3.4 percent in July from 3.5 percent in June, while the annual rate of growth by core consumer prices slipped to 2.5 percent in July from 2.6 percent in June. The modest slowdowns also came in line with estimates.
The slowdowns in the annual rates of price growth may help ease concerns about the outlook for inflation and interest rates.
AI-related stocks may also see initial strength amid a positive reaction to quarterly results and guidance from companies like CoreWeave (CRWV) and Super Micro Computer (SMCI).
However, buying interest may be somewhat subdued, as the price of crude oil sees further upside following deadly attacks on vessels in the Red Sea and Gulf of Oman.
After showing a lack of direction early in the session, stocks moved mostly lower over the course of the trading day on Tuesday. The major averages all moved to the downside, adding to the modest losses posted in Monday's session.
The major averages finished the day off their lows of the session but still in the red. The Nasdaq slid 159.91 points or 0.6 percent to 26,445.45, the S&P 500 fell 24.91 points or 0.3 percent to 7,728.20 and the Dow declined 184.13 points or 0.3 percent to 53,791.85.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Wednesday. Japan's Nikkei 225 Index climbed by 0.8 percent, while Hong Kong's Hang Seng Index slid by 0.8 percent.
The major European markets are also mixed on the day. While the French CAC 40 Index is down by 0.2 percent, the U.K.'s FTSE 100 Index is up by 0.1 percent and the German DAX Index is up by 0.5 percent.
In commodities trading, crude oil futures are climbing $0.59 to $83.79 a barrel after jumping $1.07 to $83.20 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,482, up $40.90 compared to the previous session's close of $4,441.10. On Tuesday, gold rose $21.40.
On the currency front, the U.S. dollar is trading at 158.82 yen compared to the 159.27 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1555 compared to yesterday's $1.1540.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
