Wall Street Prepares for Important Inflation Update
As Wall Street gears up for an important inflation update from the government on Friday, markets drifted modestly lower before the bell on Wednesday. Futures for the S&P 500 were essentially flat, while futures for the Dow Jones Industrial Average dipped 0.2%.
Chipmaker Nvidia saw a rise in off-hours trading, recouping losses from a recent three-day stretch where 13% of its value vanished. The company, known for its chips used in artificial intelligence applications, rose 2% in premarket trading following a 6.8% gain on Tuesday.
In other news, electric vehicle maker Rivian saw its shares soar 37% after Volkswagen agreed to invest up to $5 billion in a new joint venture. FedEx also experienced a significant jump of 14.6% after beating Wall Street’s fourth-quarter sales and profit targets.
Investors are closely watching the government’s upcoming report on inflation, which is expected to influence the Federal Reserve’s decision on when to begin cutting interest rates. The report will also include the latest figures on consumer spending, a key driver of the U.S. economy.
In Europe, major indices like Germany’s DAX and the FTSE in London fell slightly, while the CAC 40 in Paris tumbled nearly 0.8%. Meanwhile, in Asian trading, Japan’s Nikkei surged 1.3%, driven by strong demand for technology shares.
The dollar inched higher against the Japanese yen, prompting warnings from senior officials in Tokyo about potential market intervention. The euro also fell slightly against the dollar.
Overall, global markets are reacting to a mix of corporate earnings, economic data, and geopolitical factors as investors navigate uncertainty and volatility. Stay tuned for more updates as Wall Street awaits the latest inflation report and the Fed’s next moves.
