Economic Anticipations: Wall Street and Policy Predictions Amid Presidential Debate and CPI Data

Wall Street futures dipped on Wednesday as investors awaited CPI data and assessed the impact of the first presidential debate. The market anticipates a 50-basis point rate cut at the Fed's next meeting and sees mixed outcomes from Kamala Harris's proposals versus Donald Trump's policies. Cryptocurrency stocks also slipped.

Wall Street futures dipped on Wednesday ahead of the CPI data release, which will shed light on the Federal Reserve's upcoming policy actions. Investors also appear to be pricing in increased odds of Democrat Kamala Harris winning the U.S. presidency following the first debate.

After a string of weakening economic indicators, markets are forecasting a larger-than-usual 50-basis point rate cut at the Fed's next meeting. They are waiting for August's consumer price index (CPI) to confirm if inflation is nearing the central bank's target. Harris had the upper hand over Donald Trump in a combative presidential debate on Tuesday.

"An extension of the presidential debate fallout in markets will get mixed up with the impact of the August inflation report today ... this is the last big data release before the Sept. 18 FOMC announcement," stated ING analysts. Post-debate, market odds for a Trump victory declined, while those for a Harris win increased. Trump's media firm shares slumped in premarket trading as markets digested the mixed signals from the debate and economic data.

(With inputs from agencies.)