Investing.com – U.S. stock futures were little changed in after-hours trading on Tuesday after Wall Street shrugged off stronger-than-expected producer inflation data and the focus now turns to closer tracking of the consumer price index.
Comments from Federal Reserve Chairman Jerome Powell appeared to contribute to some strength on Wall Street after he said monetary policy was sufficiently tight at current levels. That has fueled bets that the Fed won’t raise interest rates further in 2024.
But those gains did not extend to the aftermarket trade, especially as inflation data came in stronger than expected for April. That put the spotlight on the upcoming reading, which is due to take place later on Wednesday.
stabilized at 5,271.75 but advanced slightly to a one-month high of 18,418.0 by 7:46 pm ET (2346 GMT). stabilized at 39,687.0 points.
CPI inflation expected after better-than-expected PPI data
Despite Tuesday’s gains, markets are now on edge due to potentially higher-than-expected April consumer price index data due later on Wednesday.
The data comes after producer price index data for April beat expectations, fueling fears that U.S. inflation will remain stubborn and reduce prospects for a Federal Reserve rate cut.
In addition to CPI data, US data for April will also be released later on Wednesday.
Wall Street Ignores Producer Price Index Data, Nasdaq Closes at Record High
On Tuesday, the index rose 0.5% to close at 5,246.68 points, while the index rose 0.3% to 39,558.11 points. The stock was the top gainer, rising 0.8% to close at 16,511.18, a record closing high.
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Relief at the end of interest rate hikes, especially after Powell’s comments, helped fuel some gains on Wall Street. Powell also confirmed that the US economy is performing well.
However, markets are set for increased volatility this week due to CPI data.
Meme Stocks Gain Cools, But GME and AMC Float
So-called meme stocks increased gains in the secondary market, although at a slower pace than those seen earlier in the week.
Video game seller GameStop Corp. Shares of (NYSE:) rose 4%, and shares of theater chain AMC Entertainment Holdings Inc (NYSE:) rose almost 10%. US shares of BlackBerry Ltd (NYSE:) rose 6.9%.
GME and AMC, which have been at the center of the meme stock rally, more than doubled this week after Keith Gill – a key figure in the meme community – began posting on social media after a nearly three-year absence.