US stock futures fall with Harris-Trump debate, CPI data in focus

Investing.com-- U.S. stock index futures fell in evening deals on Tuesday as focus turned squarely towards an upcoming inflation print that is likely to factor into the outlook for interest rate cuts.

Focus was also on the first debate between Vice President Kamala Harris and former President Donald Trump, who are set for a hotly contested 2024 presidential election. Futures deepened losses as Harris and Trump traded barbs during the debate.

Wall Street indexes were sitting on some gains over the past two sessions after uncertainty over the economy and interest rates sparked steep losses through the prior week.

S&P 500 Futures fell 0.3% to 5,486.75 points, while Nasdaq 100 Futures fell 0.4% to 18,786.0 points by 21:57 ET (01:57 GMT). Dow Jones Futures fell 0.3% to 40,681.0 points.

Harris-Trump debate in focus

Wall Street futures deepened losses as the Harris-Trump debate, hosted by ABC News, progressed.

Both candidates stuck loosely to questions from the moderators, while constantly engaging in personal attacks against each other.

Recent polls showed the candidates locked into a tightly contested race for the White House, with less than two months left to the ballot.

CPI data awaited for more rate cut cues

Focus now turns to a consumer price index inflation reading, due Wednesday, for more cues on interest rates.

The reading is expected to show inflation eased further, albeit slightly in August, potentially giving the Federal Reserve more confidence to cut interest rates this year.

Wednesday’s CPI reading comes just a week before a Fed meeting, where the central bank is expected to cut interest rates by at least 25 basis points.

Uncertainty over September’s cut was a key weight on stock markets through the past week, as signs of resilience in the U.S. economy saw traders trim expectations for a bigger, 50 bps cut in September.

Traders are pricing in a 70% chance the Fed will cut rates by 25 basis points, and a 30% chance of a 50 bps cut, CME Fedwatch showed.

Wall St buoyed by tech while financials, energy stumble

Gains in technology stocks- amid some bargain buying and accumulation in the sector- helped most Wall Street indexes log a stronger close on Tuesday, although overall gains were still limited by losses in banks and energy stocks.

Oracle Corporation (NYSE:ORCL) helped spur gains in technology stocks after the firm clocked stronger-than-expected earnings and also announced a cloud partnership with Amazon.com Inc (NASDAQ:AMZN).

Major bank stocks steadied in aftermarket trade after clocking deep losses during the session, as JPMorgan Chase&Co (NYSE:JPM) issued a net interest income warning on the prospect of lower interest rates.

Energy stocks were battered by oil prices sinking to an over three-year low on concerns over slowing demand.

The S&P 500 rose 0.5% to 5,495.52 points, while the NASDAQ Composite rose 0.8% to 17,025.79 points. The Dow Jones Industrial Average lagged, falling 0.2% to 40,736.96 points.

This article first appeared in Investing.com