On Wednesday, US stock futures saw a slight decline as investors prepared for the release of October’s Consumer Price Index (CPI) report, which could play a key role in shaping expectations for future Federal Reserve interest rate cuts. Alongside the CPI data, market participants are also focused on Thursday's producer price index (PPI) report and Friday’s retail sales data, which will provide further insights into the strength of the US economy and inflationary trends.

Stock Market Movement in Regular Trading

In regular trading on Tuesday, major US stock indices posted losses following the post-election rally. The Dow Jones Industrial Average dropped by 0.86%, the S&P 500 declined 0.29%, and the Nasdaq Composite fell 0.09%. Materials, healthcare, and real estate sectors were the hardest hit, reflecting broader market concerns about slowing economic growth. In contrast, the communication services, technology, and consumer staples sectors ended the day in positive territory, showing resilience amid broader market weakness.

Focus on Inflation Reports and Federal Reserve Outlook

As the CPI report is set to be released, traders are bracing for its impact on future Federal Reserve decisions. The CPI data will be a crucial indicator for inflation expectations and will heavily influence market sentiment regarding the likelihood of future interest rate cuts. Additionally, the PPI report on Thursday and the retail sales data on Friday will offer further clues about the strength of consumer spending and overall economic activity in the US.

After-Hours Earnings Boost for Spotify and Cava

In after-hours trading, two companies saw strong earnings reports that sparked notable surges in their stock prices. Spotify jumped 6.6% after reporting strong quarterly earnings, while Cava surged a remarkable 16.5% following its positive earnings report. These impressive performances highlighted the strength of the two companies amid broader market challenges and investor caution.

Skyworks Solutions Faces Setback

On the downside, Skyworks Solutions saw a significant drop of 3.3% after issuing weak guidance for its fiscal first quarter. This announcement raised concerns about the company’s near-term growth prospects, leading to the sharp decline in its stock price. Investors are now watching closely to see how the broader semiconductor sector will react to potential challenges in the coming months.

Sector Performance Overview

The market showed notable divergence in sector performance, with 8 out of 11 S&P sectors posting losses. Materials, healthcare, and real estate sectors led the declines, as concerns over economic slowdown and rising inflation weighed on these areas. On the other hand, communication services, technology, and consumer staples sectors managed to post modest gains, supported by ongoing demand for technology stocks and essential goods.

Conclusion: Market Focus Shifts to Inflation Data

In summary, US stock futures are moving lower as investors wait for critical inflation reports, including the October CPI, which will provide crucial insights into the future direction of Fed policy. Meanwhile, Spotify and Cava posted strong earnings, lifting their stock prices in after-hours trading. In contrast, Skyworks Solutions experienced a decline following weak guidance, adding pressure on the semiconductor sector. With key economic data due this week, all eyes are on how inflation will evolve and how it might influence the Federal Reserve’s interest rate decisions in the coming months.

The Upcoming IPOs in this week and coming weeks are Rosmerta Digital, NTPC Green, Avanse Financial and Nisus Finance.

The Current active IPO are  Mangal Compusolution, Black Buck, and Onyx Biotec.

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