CPI looms, Fed flags caution around future rate decisions - what's moving markets

investing.com:

Investing.com -- U.S. stock futures inch higher, as markets prepared for all-important September consumer price data that could influence how the Federal Reserve approaches future interest rate decisions. Minutes from the Fed's meeting last month showed caution among policymakers, although some officials are now wondering if a weeks-long surge in U.S. Treasury yields has tightened financial conditions for them. Elsewhere, Steve Scalise is nominated by his Republican colleagues as the new House Speaker, as the lower chamber of Congress remains at a standstill despite facing a host of major legislative questions.

1. CPI ahead

The latest consumer price index (CPI) is set to be published on Thursday, with the monthly insight into the pace of inflation in the world's largest economy likely to factor into future Federal Reserve policy choices.

Economists expect September's headline CPI reading to slow on an annual basis to 3.6% from 3.7%. Month-on-month, the figure is seen decelerating to 0.3% from 0.6%.

Particular attention will likely be dedicated to the core number, which strips out volatile items like food and energy. The monthly underlying rate is projected to stay unchanged at 0.3% and ease down to 4.1% year-on-year.

However, upside risks remain. On Wednesday, producer inflation data for last month was much stronger than anticipated, fueled in particular by a rise in gasoline prices.

2. Futures higher as key inflation data looms

U.S. stock futures edged up on Thursday as investors awaited the release of the consumer price figures.

At 04:50 ET (08:50 GMT), the Dow futures contract had added 71 points or 0.2%, S&P 500 futures had risen by 12 points or 0.3%, and Nasdaq 100 futures climbed by 45 points or 0.3%.

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