Wall St futures rise ahead of inflation data, Fed minutes
U.S. stock index futures rose on Wednesday, led by technology and growth shares, ahead of data on a key inflation indicator and minutes from the Federal Reserve’s September meeting.
The bounce follows five straight days of declines in the Nasdaq and the benchmark S&P 500 as recent economic data nearly sealed a case for a fourth consecutive 75-basis-point hike by the Fed.
The Labor Department’s producer prices index data due at 8:30 a.m. ET is expected to have risen 8.4% in the 12 months through September, after advancing 8.7% in August.
Stubborn inflation has sparked worries about the Fed’s aggressive monetary action tipping the world’s largest economy into a recession.
Battered megacap companies Microsoft Corp (NASDAQ:MSFT), Tesla (NASDAQ:TSLA) Inc, Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL) and Meta Platforms Inc rose between 0.6% and 0.7% in premarket trading.
Beaten-down chip shares including Nvidia (NASDAQ:NVDA) Corp, Qualcomm (NASDAQ:QCOM) Inc Micron Technology Inc (NASDAQ:MU), Advanced Micro Devices (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC) also rose between 0.9% and 1%.
A Reuters report showed the United States is scrambling to tackle unintended consequences of its new export curbs on China’s chip industry that could inadvertently harm the semiconductor supply chain.
The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
S&P 500 Technical Analysis: Daily Chart
In the daily charts, S&P 500is trading in down channel. S&P 500 is currently trading below all SMA.
RSI is in sellingzone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 3596.50& the resistance level is at 3660.00.
S&P 500 INDEX willtradein down channel until there is trend reversal.
How to Trade S&P 500INDEX this Week:
S&P 500 INDEX will follow the downtrend until there is trend reversal. So, remainbearishonS&P 500 INDEX.
