Stock Market News Live Updates: 12 September 2022

U.S. stock futures rose on Monday as Wall Street edged closer to this week’s highly anticipated inflation data.

Futures tied to the S&P 500 and the tech-heavy Nasdaq Composite rose 0.5 percent, while Dow Jones Industrial Average futures rose 0.4 percent, or 125 points.

In commodities, oil prices rose, extending a recent streak of bullish action. West Texas Intermediate (WTI) and Brent crude futures were up about 1 percent each at $87.67 a barrel and $93.86 a barrel, respectively.

All eyes are on August’s Consumer Price Index (CPI) which is expected to be released before markets open on Tuesday.

Economists polled by Bloomberg had expected the headline CPI to rise 8.1% from a year earlier in August, compared with an 8.5% rise in July. On a monthly basis, the CPI is expected to fall 0.1% from July to August, mainly due to the continued easing of energy prices. If held, it would mark the first monthly decline since May 2020.

The core CPI, which strips out the volatile food and energy components of the report and is closely watched by the Fed, is likely to rise in August, rising 6.1% from the same month last year, more than 5 .9% year-on-year – an annual increase seen in July.

The reading will likely confirm to investors whether the Federal Reserve will raise interest rates by 0.50% or 0.75% at its policy meeting later this month.

In recent weeks, Fed policymakers have doubled down on the US central bank’s commitment to tightening monetary policy for as long as necessary to restore price stability.

Federal Reserve Governor Chris Waller told a conference in Vienna, Austria on Friday that he supports a “significant” increase in the benchmark interest rate at the Fed’s Sept. 20-21 meeting.

Morning traffic along Constitution Avenue passes the US Federal Reserve in Washington, DC on August 18, 2022. – US central bankers remain committed to raising interest rates further to suppress rising prices, but agreed that it would be appropriate to slow the pace of increases “at some point,” the Federal Reserve said on August 17. (Photo by MANDEL NGAN/AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

“I expect it will take some time for inflation to return to the 2 percent target and for the FOMC to tighten policy until 2023,” Waller said. “The policy rate would need to move significantly above this neutral level to further constrain aggregate demand and put more downward pressure on prices.”

CME Group’s Fedwatch tool puts the likelihood of a three-quarter rate hike at 90%, up from 69% two weeks ago.

A list of Wall Street institutions have also raised their bets to a 75 basis point increase this month, including Bank of America, Goldman Sachs and Nomura.

In other markets, Twitter ( TWTR ) was in the spotlight after the social media platform responded to a letter from Elon Musk on Sept. 9, saying the company intends to enforce the merger agreement and demanding that Musk and his team comply with the terms of the agreement. Shares were down about 1% in premarket trading.

Disney ( DIS ) was also in the spotlight early Monday after activist investor Dan Loeb apparently backed out of the company’s recent push to sell or spin off ESPN. Loeb’s hedge fund, Third Point Management, said in August that it had bought a $1 billion stake in Disney.

“We have a better understanding of ESPN’s potential as a standalone business and another industry for Disney to reach a global audience to generate advertising and subscriber revenue.” Loeb said in a tweet on Sunday after Disney CEO Bob Chapek promised to “get ESPN back on track.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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