U.S. Stock Index Futures Edge Higher Amid Inflation Data and Q3 Earnings Anticipation

U.S. stock index futures saw a slight rise in after-hours trading on Thursday, following a mildly negative session on Wall Street. The uptick came despite stronger-than-expected consumer inflation data, which raised concerns about the Federal Reserve's potential interest rate decisions.

Key Focus: Q3 Earnings and Tesla’s Robotaxi Reveal

Investors are gearing up for the third-quarter earnings season, which starts early on Friday. Additionally, the market eagerly awaits Tesla’s highly anticipated robotaxi announcement, which could revolutionize the autonomous driving industry.

As of 19:10 ET (23:10 GMT), S&P 500 futures rose 0.1% to 5,834.75 points, while Nasdaq 100 futures also gained 0.1%, reaching 20,453.50 points. Dow Jones futures followed suit, edging up by 0.1% to 42,782.0 points.

Inflation Data Boosts Bets on Slower Interest Rate Cuts

September's Consumer Price Index (CPI) data revealed stronger-than-expected inflation numbers. While inflation eased, it didn’t decline as much as analysts had forecast. This has sparked speculation that the Federal Reserve may opt for a more measured approach to cutting interest rates.

Many traders are now betting on a 25-basis-point rate cut in November, following the latest inflation reading. Federal Reserve officials, including Atlanta Fed President Raphael Bostic, hinted that holding rates steady in November could also be an option.

The possibility of a slower rate cut path could pose challenges for Wall Street, as stock valuations have reached record highs, partly based on expectations of aggressive rate reductions.

Upcoming Data: Producer Price Index and Consumer Sentiment

Friday's Producer Price Index (PPI) data is set to provide further insights into the state of the economy. Additionally, a key consumer sentiment reading will help gauge the mood of American consumers amid ongoing inflation concerns.

However, the release of higher-than-expected weekly jobless claims tempered some expectations for a larger rate cut. A weaker labor market is expected to keep the Federal Reserve on track with its easing policy.

Despite these concerns, Wall Street managed to limit its losses, buoyed by gains in major technology stocks. The S&P 500 dipped 0.2% to 5,780.05 points, while the Nasdaq Composite remained relatively flat at 18,283.90 points. The Dow Jones Industrial Average slipped 0.1% to 42,454.12 points.

Investor Spotlight: Major Banks and Tesla’s Robotaxi

The third-quarter earnings season remains a key focus for investors, with major banks including JPMorgan Chase & Co., Wells Fargo & Company, and Bank of New York Mellon scheduled to report on Friday. Next week, earnings reports from Goldman Sachs, Bank of America, and Citigroup will provide further market direction.

In the tech space, Tesla Inc. is set to unveil its robotaxi during a special event on Thursday evening. This marks a significant shift towards autonomous driving and artificial intelligence for the electric vehicle manufacturer, which is currently grappling with declining vehicle sales. Tesla’s robotaxi reveal is expected to be a major milestone in the autonomous driving industry.