US Inflation Report Sets Stage for Fed Rate Decision
US inflation data is set to be released on September 11th, and markets are waiting with bated breath for the clearest signal yet on whether the Federal Reserve will hike interest rates next week. The August US inflation report could determine the course of action for the Fed, but in the meantime, traders are assessing the current market conditions.
Recently, oil prices had surged, setting the S&P 500 on course for its worst week since June. However, futures for the index rebounded by 0.4% after oil prices eased towards $105 a barrel, still on track for a nearly 10% jump since Monday.
Treasury yields also fell, led by the short end, which is a welcome respite for US stocks and Treasuries. The Stoxx 600 gained 0.2%, with traders waiting anxiously for the inflation report to guide their next moves.