© Reuters.
Investing.com — U.S. stock futures edged higher Wednesday, helped by another decline in Treasury yields ahead of the publication of minutes from the Federal Reserve’s September meeting.
By 07:00 ET (11:00 GMT), the contract was up 85 points, or 0.3%, traded 12 points, or 0.3%, higher and climbed 55 points, or 0.4%.
The main indices on Wall Street closed higher Tuesday as dovish comments from a few Federal Reserve officials fueled hopes the central bank is nearing the end of its interest rate increases.
The 30-stock ended Monday 135 points, or 0.4%, higher, the benchmark gained 0.5%, while the tech-heavy closed up 0.6%.
Fed minutes in focus
Sentiment on Wall Street has picked up this week as yields on U.S. government bonds have eased, both on safe-haven bids due to the war in the Middle East as well as dovish remarks from Federal Reserve officials throughout this week.
These comments continued Tuesday, when Atlanta Fed President Raphael Bostic suggested there was no longer the need for the central bank to raise interest rates hikes more this year.
Attention now turns to the upcoming release of from the Fed’s September gathering, when the rate-setting Federal Open Market Committee opted to keep borrowing costs steady.
At the time, the Fed signalled that another rate rise may be required this year to help corral stubbornly elevated inflation. The recent shift in tone has created doubt that another hike is coming, and investors will be looking for some form of guidance.
September producer prices due
There will be more appearances by Fed officials on Wednesday, including from , and , but most eyes will be on the week’s first big inflation report later in the session, the September PPI release, ahead of Thursday’s key number.
The September is expected to rise 1.6% for the year, and 0.3% from August, while core PPI is expected to rise 2.3% for the year and 0.2% for the month.
Signs underlying U.S. inflation is moderating are likely to reinforce the recent more dovish tone from Fed members about future policy, likely setting the market tone for the rest of the year.
Exxon Mobil lines up Pioneer
In corporate news, Exxon Mobil Corp (NYSE:) has agreed to purchase rival Pioneer Natural Resources (NYSE:) for nearly $60 billion in an all-stock deal, in what would be the biggest acquisition by any company so far this year.
Crude hands back some of the week’s gains
Oil prices retreated Wednesday but traders are still grappling with the potential of supply disruptions due to the turmoil in the Middle East.
The market has calmed down significantly after both crude benchmark contracts rose just over 4% on Monday, but fears remain of political and economic contagion from the fighting ignited by Saturday’s attacks by Palestine militant group Hamas on Israelis in Gaza.
Market participants will also be on the lookout for U.S. weekly oil inventory data from the industry body , due a day later than usual following Monday’s Columbus Day holiday.
By 07:00 ET, the futures traded 0.5% lower at $85.55 a barrel, while the contract dropped 0.4% to $87.31.
Additionally, rose 0.7% to $1,887.95/oz, while traded largely flat at 1.0602.
(Oliver Gray contributed to this item.)
