Stock Futures Drop as Inflation Data Looms, Apple Faces Competition

U.S. stock index futures slightly declined on Tuesday amid caution before key inflation data. Apple's shares saw a drop after news about Huawei's new tri-fold smartphone and the EU's tax ruling. The Federal Reserve is expected to cut interest rates. A debate between Kamala Harris and Donald Trump is forthcoming.


Devdiscourse News Desk | Updated: 10-09-2024 17:11 IST | Created: 10-09-2024 17:11 IST
Stock Futures Drop as Inflation Data Looms, Apple Faces Competition
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U.S. stock index futures fell marginally on Tuesday, influenced by investor caution ahead of crucial inflation data due later this week. The data could solidify expectations regarding the Federal Reserve's anticipated interest rate cut, scheduled for September 18.

Apple's shares dipped nearly 1% in premarket trading after China's Huawei launched a tri-fold smartphone just hours after Apple's latest iPhone debut. Further impacting Apple, the company lost its appeal against an EU order to pay 13 billion euros ($14.34 billion) in back taxes to Ireland.

Focus remains on the upcoming August inflation reading on Wednesday, expected to show a slight moderation in the annual headline number to 2.6%, while monthly figures remain unchanged at 0.2%. Producer prices data will be released on Thursday. Market confidence is high that the Federal Reserve will start its policy easing cycle this month. According to CME's FedWatch Tool, there is a 73% likelihood of a 25-basis point cut, with the expectation of a total 100 bps reduction by the end of 2024.

In market movements, Oracle surged 8.1% after surpassing quarterly expectations and providing an optimistic revenue growth forecast for the next quarter, driven by increased demand for its cloud services. Meanwhile, Hewlett Packard Enterprise dropped 5.6% following the announcement of a $1.35 billion mandatory convertible preferred stock offering to fund its acquisition of Juniper Networks.

(With inputs from agencies.)

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