U.S. stock futures slipped Wednesday morning following the release of January’s hotter-than-anticipated consumer price index.
Dow Jones Industrial Average futures lost 128 points or 0.37%. S&P 500 and Nasdaq 100 futures fell by 0.54% and 0.73%, respectively.
The Dow fell during the trading session and closed lower by more than 156 points. The S&P 500 remained relatively flat, dropping 0.03%, while the tech-heavy Nasdaq Composite shook off earlier losses to close 0.57% higher.
Inflation data for January came slightly above economists’ estimates, indicating a potentially longer path in the Federal Reserve’s fight against rising prices. The consumer price index increased by 0.5% for the month and 6.4% from the prior year, compared to estimates of 0.4% monthly and 6.2% annually, according to Dow Jones’ survey of economists.
Ed Yardeni, president of Yardeni Research, noted that while inflation remains above the Fed’s target rate of 2%, the higher-than-expected numbers weren’t entirely surprising.
“The inflation came in with expectations, and I think that’s why the market took it in stride,” he said on CNBC’s “Closing Bell: Overtime.” Commenting on the monthly uptick in inflation data, Yardeni added, “I think we’re going to have some bumps along the road. But all in all, I think we are certainly seeing strong disinflation.”
However, he added that despite anticipating a soft landing for the economy, he doesn’t expect the Fed to cut interest rates this year.
Biogen and Kraft Heinz will be reporting their quarterly earnings on Wednesday before the bell.
Investors will also be looking toward the latest retail sales data to gauge consumer demand. The National Association of Home Builders/Wells Fargo Housing Market Index, industrial production and business inventories data will be released on Wednesday morning.