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Futures Slide With All Eyes On “Big Jump” In CPI

US equity futures continued their slide, and a sell-off in global shares extended to its longest losing streak in two months on Wednesday as investors awaited the latest inflation figures to assess the risk that soaring prices will snuff a recovery in the world’s biggest economy, prompting bets on earlier interest rate hikes and higher bond yields.

At 7:15am Dow e-minis were down 136 points, or 0.4%, S&P 500 e-minis were down 17 points, or 0.42%, Nasdaq 100 e-minis were down 84 points, or 0.62% while futures tracking the small-cap Russell 2000 index dropped 1%. The dollar advanced with Treasuries.

Notable pre-market movers included:

  • FAAMG mega-caps – Facebook, Amazon.com, Apple, Google and Microsoft – which all fell between 0.4% and 0.9%.
  • Streaming platform FuboTV surged 20% after it raised its full-year revenue and subscription forecasts.
  • Electronic Arts Inc inched up 1.2% as it forecast annual adjusted revenue above analysts’ estimates, betting that demand for its titles like “FIFA 21” and “Apex Legends” would stay strong.
  • Upstart Holdings jumped 23% in premarket trading after the online lending platform published an earnings outlook that exceeded analyst expectations

The tech-heavy Nasdaq 100 underperformed after hedge funds emerged on Tuesday to cover their shorts, although reflation fears returned with a vengeance overnight. Investor focus is locked on the U.S. CPI report to be released at 830am with analysts expecting a 3.6% lift in year-on-year prices, boosted by last April’s low base. More notable is the sequential jump in core CPI which at 0.3% avoids volatile food and energy prices as well as the 2020 base effect, and will be the biggest monthly increase this century.

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