Stock Futures Mixed, Treasurys Strengthen Ahead of Inflation Data — Update

By Joe Stonor

Nasdaq futures slipped as a selloff in chip stocks looked set to extend into a seventh day, while Treasury yields moved lower ahead of pivotal U.S. inflation data Wednesday.

Consumer-price inflation data for September will help shape investor expectations for the Federal Reserve's next policy meeting in two weeks. Markets price a 78% probability that the Fed will hold rates pat in October and an 88% probability for a December hike, according to LSEG. Economists surveyed by the Wall Street Journal expect annual inflation to increase to 3.6% for September, up from 3.4% in August.

"Today's CPI report [is] the immediate arbiter of whether the recent easing in market rate expectations can hold," said Tickmill Group strategist Patrick Munnelly.

Treasury yields pulled back ahead of the print after Fed policymakers signaled they were in no rush to raise rates. Speaking in Bangkok, the Fed's vice chair of supervision Michelle Bowman said there is room to assess economic developments before the central bank reaches for monetary policy action, a day after New York Fed president John Williams said there is "no need for urgency" after September's quarter-point rate hike. Ten-year yields dropped 2.1 basis points to 5.194%, while 30-year yields fell 1.7 basis points to 5.547%.

Futures for the Dow Jones Industrial Average added 0.3% and S&P 500 futures inched up 0.2%. Nasdaq futures slipped 0.1% as weakness in chip stocks continued into premarket trade. The iShares Semiconductor ETF was down 0.65% in premarket trading, on track for a seventh-straight down day. Shares in Micron and Intel both fell by more than 1% premarket.

AI-linked stocks were on firmer ground in Europe. ASML--Europe's most valuable company--raised its guidance again on surging demand, lifting AI stocks on the continent. In Asia, tech stocks turned negative after gaining earlier in the day. South Korea's Kospi index ended down 0.4%, while Japan's Nikkei 225 edged 0.05% lower.

Oil prices were steady despite Houthi attacks on a Saudi Aramco administrative building Tuesday and after the International Energy Agency forecast a sharp fall in demand. Front-month Brent crude contracts for December delivery inched 0.5% higher to $106.30 a barrel.

The dollar reversed earlier losses to nudge higher against a basket of currencies. Bitcoin handed back earlier gains in turn to trade flat at around $83,390. New York gold contracts dropped 0.4%, back below $4,200 a troy ounce.

Inflation data will be in focus Wednesday, while European Central Bank president Christine Lagarde is set to speak. AI investors' attention will turn to Anthropic's expected pre-public offering investor day, at which the company is set to disclose its third-quarter earnings, CNBC reported. Markets will also react to earnings from Bank of America, Morgan Stanley and BlackRock, which are all set to report earnings.

Write to Joe Stonor at josephmichael.stonor@wsj.com

(END) Dow Jones Newswires

October 14, 2026 08:28 ET (12:28 GMT)