The stock futures showed little movement as traders awaited the release of the Federal Reserve's preferred inflation measure.
Futures linked to the Dow Jones Industrial Average rose slightly, while S&P 500 futures also inched up. However, Nasdaq-100 futures experienced a slight decline.
This cautious trading environment reflects the market's anticipation of economic indicators that could influence the Fed's monetary policy decisions. Economists surveyed by Dow Jones predict a year-over-year increase of 2.8% for the core reading of the personal consumption expenditures price index (PCE), which excludes volatile food and energy prices. Investors are keenly focused on this data as it may provide insights into the Fed's approach to interest rates.
Several companies reported their quarterly results, leading to notable stock movements in after-hours trading. Dell Technologies saw its shares plummet following a disappointing revenue forecast, while HP's shares slid after providing weaker-than-expected earnings guidance. Workday also experienced a decline in stock price after announcing lower-than-expected subscription revenues and operating margins.
The upcoming Thanksgiving holiday is expected to lead to lighter trading volumes. Despite economic uncertainty, stocks managed to finish in positive territory on Tuesday, suggesting cautious optimism among investors.
Additional key inflation data, including personal income and consumer spending figures for October, will further inform market sentiment and the Fed's policy trajectory. The interplay between corporate earnings, inflation data, and monetary policy will remain central to market dynamics in the coming weeks.