Getty Images / Bryan R. Smith
- US stocks slipped Wednesday, continuing a sharp sell-off following Moody's downgrade of 10 US banks.
- Markets are awaiting new inflation data on Thursday from the July Consumer Price Index report.
- Investors are eyeing Disney earnings for the third quarter, which will be reported after the closing bell.
US stocks edged lower Wednesday, struggling to recover from August's sell-off ahead of the July inflation report on Thursday. Major indexes were down, extending a sharp sell-off sparked this week after Moody's downgraded its credit rating for 10 US banks.
Investors are eyeing Thursday's July Consumer Price Index report, which will be a key datapoint for the Federal Reserve in determining its next policy. Inflation is expected to accelerate 0.41% from the prior month, according to a forecast from Federal Reserve Bank of Cleveland economists, with headline prices accelerating 3.42% year-over-year. That's slightly higher than June's inflation figures, with prices rising 0.2% from the past month to accelerate 3% on an annualized basis.
Still, markets are pricing in an 87% chance the Fed will keep interest rates level at its next policy meeting in September, per the CME FedWatch tool, though central bankers will also have August inflation and August employment data to digest.
Investors today have their eye on The Walt Disney Company, which is expected to report earnings after the closing bell.
Here's where US indexes stood shortly after the 9:30 a.m. ET opening bell on Monday:
- S&P 500: 4,495.40, down 0.09%
- Dow Jones Industrial Average: 35,305.83, down 0.02% (8.66 points)
- Nasdaq Composite: 13,841.44, down 0.34%
Here's what else is happening this morning:
- WeWork warned it might collapse, signaling major distress in the commercial real estate business.
- The Chinese economy was pushed into deflation, partially due to an oversupply-led plunge in pork prices.
- Tesla's chief financial officer bid the EV-maker farewell after pocketing a $590 million fortune.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil inched higher 1.05% to $83.79 per barrel. Brent crude, oil's international benchmark, rose 0.75% to $86.84.
- Gold slipped to $1,923.25 per ounce.
- The yield on the 10-year Treasury dipped one basis point to 4.012%.
- Bitcoin rose 1.4% to $29,948, while ether rose 1.13% to $1,864.