Investing.com– U.S. stock index futures posted small gains on Wednesday, reversing an earlier weaker tone after U.S. consumer inflation came in as expected in October, suggesting the Federal Reserve could continue its relaxation path.
At 09:32 ET (14:32 GMT), the index was up 40 points, or 0.1%, the index was up 7 points, or 0.1%, and gained 25 points, or 0.1% .
Wall Street's main indexes fell from record highs on Tuesday as investors took a measure of recent gains.
US CPI data in focus
Data released early Wednesday showed the stock rose 2.6% last month on an annualized basis, compared with 2.4% in September. In month-on-month terms, the figure was 0.2%, matching the pace of September.
The “core” reading, excluding more volatile items such as food and fuel, rose 3.3% year-on-year and 0.3% month-on-month, in line with September.
All of these numbers were in line with expectations and eased concerns after the president of the Minneapolis Federal Reserve warned Tuesday that any surprise in inflation could cause the Fed to keep rates steady in December.
The Richmond Fed president had also said the central bank was prepared to respond to any new upward momentum in the recent decline in price growth.
Additionally, President-elect Donald Trump had pushed a protectionist stance toward trade and immigration during his campaign, policies that are expected to boost inflation in the long term.
The central bank cut rates by 25 basis points last week, and is expected to cut them again at its next meeting in December.
Rivian soars thanks to increased investment
In the business sector, Rivian Automotive (NASDAQ:) shares rose 11% after the electric vehicle maker and Volkswagen (ETR:) announced further investment by the German automaker in a joint venture.
Spotify technology (NYSE:) rose 9% after posting strong subscriber growth for the September quarter while also issuing a strong forecast for the year.
CAVA Group (NYSE soared 16% after the Mediterranean fast-casual restaurant chain rose 14% after reporting improved revenue and results in the third quarter.
Skyworks Solutions (NASDAQ fell more than 2% after the semiconductor company's first-quarter forward guidance fell short of expectations.
Crude recovers from losses
Oil prices added to recent losses, trading near their lowest level in two weeks after producer group OPEC lowered its global oil demand growth forecasts.
At 09:32 ET, the Brent contract fell 0.6% to $71.47 per barrel, while US crude oil futures (WTI) fell 0.7% to $67.61 per barrel.
Both contracts had fallen more than 5% at the start of the week.
In its report on Tuesday, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth in both 2024 and 2025, mainly due to weakness in China, the top oil importer.
It is scheduled to release its updated forecast on Thursday.
(Ambar Warrick contributed to this article.)
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