Wall St set for lower open as hot inflation data fuels rate-hike bets
SPY•U.S. stock futures fell after September inflation rose 3.7% year over year, above the 3.6% estimate, lifting traders’ perceived chance of an October quarter-point rate hike to 46% from 21.6%. Bank of America shares dropped after its third-quarter profit fell.
1. Inflation lifts rate bets
Wall Street’s main indexes were set for a lower open after September consumer prices rose 3.7% year over year, above economists’ 3.6% estimate. Prices increased 0.6% from the previous month, in line with estimates. Traders raised the perceived chance of a quarter-point rate hike in October to 46%, from 21.6% before the data.
2. Bank earnings mixed
Bank of America fell 7.3% in premarket trading after third-quarter profit declined and it set aside $1.2 billion for regulatory fines. Morgan Stanley slipped 2.2% despite higher quarterly profit, while BlackRock gained 2.2% after reporting increased third-quarter profit, helped by higher fees from managing client funds.
3. Futures and other movers
At 8:48 a.m. ET, Dow, S&P 500 and Nasdaq 100 futures were down 0.20%, 0.31% and 0.61%, respectively. Chip stocks fell, with Intel down 2.3%, Micron off 1.6% and Nvidia down 1%. Liquidia jumped 37.6% after settling six lawsuits with United Therapeutics, ensuring uninterrupted access to its pulmonary hypertension drug Yutrepia.
