Nasdaq 100, Dow Jones, S&P 500 News: Futures Hold as Inflation Report Looms

Inflation Expectations and Market Sentiment

Economists are forecasting a 3.3% rise in October’s CPI, a slight decrease from September. A higher-than-expected CPI could challenge the notion that the Fed is finished raising rates, while a lower figure might reinforce it. Currently, there’s an 86% chance that rates will hold steady in December, as projected by the CME Group’s FedWatch tool.

Credit Rating and Government Shutdown Concerns

Adding to market uncertainty, Moody’s downgraded the U.S. credit outlook to “negative,” citing fiscal deficits. This comes alongside concerns of a potential U.S. government shutdown, with contentious stopgap measures being discussed in Congress.

Corporate Earnings and Economic Indicators

On the corporate front, Home Depot will report earnings before Tuesday’s bell, with analysts anticipating a year-over-year decline. Additionally, economic data releases and Fed officials’ remarks throughout the day will be closely monitored for further market direction.

This positioning presents a scenario where sustained buying pressure could lead to a test of these upper barriers. However, the proximity to the minor support level warrants attention as any shift in market dynamics could test this threshold’s resilience.