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13.09.2023 03:35 PM
US premarket on September 13: Stock market keeps steady after inflation data

US stock index futures rebounded after US inflation data, which slightly missed economists' expectations. S&P 500 futures rose by 0.2%, while the tech-heavy NASDAQ jumped 0.53%. Bonds and the dollar saw minor changes, as the mixed inflation report fueled speculation that the US Federal Reserve might hold off on interest rate hikes but refrain from announcing an end to its tightening cycle.

The yield on two-year Treasury notes, which are more sensitive to the Fed's upcoming moves, hovered around 5%.

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According to the Labor Bureau report, the core Consumer Price Index (excluding food and energy) increased by 0.3% compared to July but dropped year-on-year to 4.3%. These figures closely matched predictions. The overall Consumer Price Index surged by 0.6% and 3.7%, respectively.

The current inflation report allows the Fed to maintain a more comfortable wait-and-see stance, as the higher-than-expected inflation is mainly driven by energy prices – not a primary concern for the Fed right now.

With inflation seemingly in the rearview, traders now turn their eyes to the latest geopolitical events: North Korean leader Kim Jong-un and President Vladimir Putin met for their first summit in four years. US politicians believe this will allow both countries to focus on arms supplies.

Premarket

American Airlines Group Inc. shares fell after cutting its third-quarter profit forecast due to a surge in jet fuel prices and roughly $230 million in pilot salary payments under a new contract. This news also weighed on shares of United Airlines Holdings Inc. and Delta Air Lines Inc.

Spirit Airlines Inc. shares slumped after the discount airline warned of recent fare increases, especially for bookings in the latter half of the quarter leading up to Thanksgiving.

Moderna Inc. shares surged after its modified RNA-based flu vaccine met primary objectives in final-stage trials.

Ford Motor Co. shares went up following a rating upgrade from UBS Group AG, changing from "sell" to "buy."

The much-anticipated IPO of Arm Holdings Plc is set for Wednesday, and investors are watching how parent company SoftBank Group Corp. will perform in the year's largest listing.

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As for the S&P 500, demand for the index remains steady. Bulls need to secure levels at $4,469 and $4,488. After that, they may push the price to $4,515. Bulls also should control $4,539, which will strengthen the bullish market. In the event of a downward move amid risk aversion, bulls will have to protect $4,447. A break below this level could quickly push the index back to $4,427 and pave the way towards $4,405.

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