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US STOCKS-Futures dip after Harris-Trump debate; eyes on inflation data
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US STOCKS-Futures dip after Harris-Trump debate; eyes on inflation data
Sep 11, 2024 5:08 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Futures down: Dow 0.46%, S&P 500 0.38%, Nasdaq 0.42%

Sept 11 (Reuters) - U.S. stock index futures dipped on

Wednesday, with investors pricing in greater odds of Democrat

Kamala Harris prevailing in the upcoming presidential elections,

while focus moved to a key inflation reading later in the day.

Investors have for weeks been adjusting their expectations

around the Federal Reserve's policy meeting next week and the

inflation data could feed into those. But the U.S. presidential

debate, in which Harris put her Republican rival Donald Trump on

the defensive late on Tuesday, was driving sentiment, analysts

said.

Wall Street remained on edge as the debate offered investors

little clarity on key policy issues, even as betting markets

swung in Harris' favor after the event.

"Relative to Trump, we see Harris' policies as less fiscally

expansionary, less focus on tax cuts," noted Jefferies' chief

Europe economist Mohit Kumar.

After the debate, pricing for a Trump victory slipped by 6

cents to 47 cents on online betting site PredictIt, while

climbing to 57 cents from 53 cents for a Harris win.

Shares of Trump Media & Technology Group ( DJT ), Trump's

media firm, slid 15.2% in premarket trading.

Yields on U.S. government bonds fell across the curve, with

the yield on the 10-year note last at 3.6068%, its

lowest level in more than a year.

Other traditional safe-haven assets such as the Japanese yen

and Swiss franc also rose, while the dollar

index came under pressure.

Later in the day, focus will be on a reading of August

consumer price inflation (CPI), with headline inflation expected

to ease to 2.6% year-on-year, while the "core" figure, which

excludes volatile components like food and energy, is expected

to remain unchanged at 3.2% annually.

This will be followed by the producer prices report on

Thursday.

Traders are all but convinced that the Fed will cut interest

rates when it meets on Sept. 17-18, with 67% tilted toward a

25-basis point cut, according to CME's FedWatch Tool.

The S&P 500 and the Nasdaq closed higher in

choppy trading on Tuesday, while the Dow ended lower as

losses in big banks such as Goldman Sachs ( GS ) weighed.

At 05:22 a.m. ET, Dow E-minis were down 186 points,

or 0.46%, S&P 500 E-minis were down 20.75 points, or

0.38%, and Nasdaq 100 E-minis were down 80.75 points, or

0.42%.

Among other stocks, GameStop ( GME ) dropped 10.8% after the

videogame retailer, which has been at the center of a "meme

stock" frenzy, said it had filed for an offering of up to 20

million shares and reported lower second-quarter revenue.

Cryptocurrency and blockchain-related stocks slipped as

bitcoin, the world's largest cryptocurrency, fell more

than 1%.

Exchange operator Coinbase Global ( COIN ) lost 2.7%,

software firm MicroStrategy ( MSTR ) eased 3.9% and crypto miner

Riot Platforms ( RIOT ) fell 2.1%.

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