Inflation Report Jolts Stock Futures: Rates in Focus

The latest U.S. inflation data showed a higher-than-expected rise in consumer prices in September, triggering concerns about potential interest rate adjustments and impacting stock index futures. The Consumer Price Index increased 2.4% annually, while jobless claims exceeded estimates, influencing investor sentiment.

U.S. stock index futures saw extended losses on Thursday following the release of inflation data that outpaced expectations for September. The Labor Department reported a 2.4% rise in the Consumer Price Index on an annual basis, surpassing the anticipated 2.3% increase. This development suggests fewer interest-rate cuts might occur later this year.

Focusing on core inflation, which excludes food and energy components, there was a 0.3% monthly rise as opposed to the forecasted 0.2% increase, while the year-on-year core inflation registered at 3.3%, slightly above the predicted 3.2%. Additionally, the job market showed unexpected movements with jobless claims reaching 258,000 for the week of October 5, surpassing the projected 230,000.

At 8:33 a.m. ET, S&P 500 E-minis had dropped by 12.5 points, equating to a 0.21% decrease. Meanwhile, Nasdaq 100 E-minis fell by 69.25 points, or 0.34%, and Dow E-minis decreased by 70 points, representing a 0.16% decline.

(With inputs from agencies.)