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US STOCKS-Wall St set for lower open as sticky inflation hampers bumper rate-cut bets
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US STOCKS-Wall St set for lower open as sticky inflation hampers bumper rate-cut bets
Sep 11, 2024 11:07 AM

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

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

*

August YoY CPI at 2.5% vs 2.6% estimate

*

Trump Media & Technology ( DJT ) shares slide

*

Gamestop ( GME ) falls after stock offering

*

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%.

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