Wall Street Wavers Amid Federal Reserve Uncertainty and Political Developments

Wall Street projected a lower open amid Federal Reserve interest rate uncertainty and rising odds of Kamala Harris winning the U.S. presidency. Inflation data could discourage a significant rate cut, while the presidential debate impacted market sentiment. Key stocks reacted to various financial and political developments.

Wall Street is expected to open lower today as uncertainty grows over the Federal Reserve's interest rate decisions following recent inflation data. The likelihood of Kamala Harris winning the U.S. presidency also increased after a televised debate, further influencing market sentiment.

August saw consumer prices rise marginally in the U.S., with underlying inflation remaining sticky, which may dissuade the Fed from implementing a half-point rate cut next week. According to Jason Pride of Glenmede, the latest data likely favors a more conservative 25-basis point reduction.

The consumer price index (CPI) rose 0.2% in August, consistent with July's increase, while the core figure, excluding food and energy, rose 0.3%, surpassing forecasts. This has led traders to bet on a quarter-percentage point cut in interest rates next week, driving U.S. government bond yields higher and boosting the dollar index.

Political developments also swayed market sentiment after a heated presidential debate between Harris and Donald Trump. Online betting shifted in Harris's favor, while Wall Street responded with mixed reactions to their proposed policies. At 08:47 a.m. ET, Dow E-minis were down 219 points, S&P 500 E-minis fell 19.25 points, and Nasdaq 100 E-minis dropped 57 points.

In other market news, GameStop shares plunged 12.3% after announcing a share offering and lower revenue, while large banks also dipped following executives' comments on earnings. Meanwhile, lithium miners saw a boost due to production adjustments by Chinese battery giant CATL. Cryptocurrency and blockchain stocks slipped amid a 2% decline in bitcoin, affecting companies like Coinbase Global and Riot Platforms.

(With inputs from agencies.)