[ad_1]
U.S. stock futures were slammed early Wednesday after a hotter-than-expected inflation report for June.
S&P 500 futures were down over 1%, Nasdaq futures fell 1.8%, while Dow futures were off 0.8%.
In June, headline inflation rose 9.1%, the most since November 1981 and well above estimates for an 8.8% in prices.
“For a market that has been dealing with recession fears, I think this week will bring renewed fears about elevated inflation,” Deutsche Bank Chief U.S. Economist Matthew Luzzetti told Yahoo Finance Live earlier this week.
June’s figures are expected to inform the Federal Reserve’s next policy move as they tighten monetary policy in efforts to restore price stability.The U.S. central bank is expected to raise interest rates by another 75 basis points at the next policy-setting meeting on July 26-27.
In addition to the latest inflation print, a lineup of quarterly results are also in the queue for investors as major companies kickstart the new earnings season.
PepsiCo (PEP) was an early reporter on Tuesday. The beverage-maker beat Wall Street estimates but warned of inflationary pressures on the business.
“Balance of the year inflation is higher than it is for the first half of the year,” Pepsi CFO Hugh Johnston told analysts in a call. “I think we’ve mentioned in the past, we’re in the teens in terms of commodity inflation. That will continue, but a little bit higher in the back half.”
Rising prices associated with inflation and higher interest rates will be in focus among investors as other big names among Corporate America release results. Delta Air Lines (DAL) is poised to report after the bell on Wednesday, while JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) are among the big banks to follow suit Thursday and Friday.
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here for the latest economic news and economic indicators to help you in your investing decisions
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
[ad_2]
Source link
