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August YoY CPI at 2.5% vs 2.6% estimate
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Trump Media & Technology ( DJT ) shares slide
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Gamestop ( GME ) falls after stock offering
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Futures down: Dow 0.5%, S&P 500 0.35%, Nasdaq 0.3%
(Updated at 8:47 a.m. ET/ 1247 GMT)
By Shashwat Chauhan and Lisa Pauline Mattackal
Sept 11 (Reuters) - Wall Street was set to open lower as
uncertainty about the Federal Reserve's interest rate path
increased following the latest inflation data, while odds of
Democrat Kamala Harris winning the U.S. presidency rose
following a televised debate.
Consumer prices in the United States rose marginally in
August, but underlying inflation showed some stickiness, which
could discourage the Fed from delivering a half-point rate cut
next week.
"The Fed would have liked to have seen softer numbers in
order to justify a potential 50-basis point cut at the upcoming
meeting ... but this (data) probably makes it more likely that
they proceed with a 25-bps cut," Jason Pride, chief of
investment strategy and research at Glenmede, said.
The consumer price index (CPI) increased 0.2% last month
after climbing 0.2% in July, the Labor Department's Bureau of
Labor Statistics said.
The core figure, excluding volatile food and energy
components, rose 0.3% on a monthly basis against forecasts of a
0.2% rise.
The Fed will likely start a series of interest-rate cuts
next week with a quarter-of-a-percentage point reduction,
traders bet on Wednesday.
Yields on U.S. government bonds rose after the data, with
the yield on the 10-year note last at 3.6853%, while
the dollar index turned positive, last up 0.1%.
Producer prices data is also due on Thursday.
Market sentiment was also driven by political developments
after Harris put her Republican rival Donald Trump on the
defensive in a combative presidential debate on Tuesday.
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 14.9% in premarket trading on Wednesday.
While the debate offered Wall Street little clarity on key
policy issues, some market watchers see Harris's proposals to
raise the corporate tax rate as likely to hit company profits,
while Trump's tougher stance on tariffs could stoke inflation.
At 08:47 a.m. ET, Dow E-minis were down 219 points,
or 0.54%, S&P 500 E-minis were down 19.25 points, or
0.35%, and Nasdaq 100 E-minis were down 57 points, or
0.3%.
Among other stocks, GameStop ( GME ) dropped 12.3% 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.
Large banks' stocks were lower after slumping on Tuesday as
comments from top executives raised worries about earnings.
JPMorgan Chase ( JPM ) dipped about 0.3%, while Morgan Stanley ( MS )
fell 1.8%.
Shares of lithium-miners jumped after Chinese battery giant
CATL said it plans to make adjustments to lithium
carbonate production in Yichun based on recent market
conditions. Albemarle, one of the largest lithium miners
in the world, jumped 13.5%.
Cryptocurrency and blockchain-related stocks slipped as
bitcoin fell nearly 2%. Trump has positioned himself as a
crypto-friendly candidate.
Exchange operator Coinbase Global ( COIN ) lost 3.3%,
software firm MicroStrategy ( MSTR ) eased 3.5% and crypto miner
Riot Platforms ( RIOT ) fell 3.9%.