Hotter-than-expected inflation pushes Pre-market futures lower

Pre-market futures turned red as new Consumer Price Index data revealed hotter-than-anticipated inflation for October. The blue-chip Dow slipped 85 points, while the tech-heavy Nasdaq dropped 390 points and the S&P 500 fell 50 points. Bond yields climbed alongside the inflation data, with the 10-year yield rising to 4.936%, signaling pressure on interest rates.

October CPI rose 0.4%, exceeding consensus estimates by 10 basis points, while core inflation also came in 10 basis points higher than expected. Energy prices grew 0.7% and food prices rose 0.5%, contributing to an unsustainable level of month-over-month inflation. These figures have pushed market odds to nearly 100% for a 25 basis point rate hike next month.

Small-business sentiment remained steady, with the NFIB Small Business Optimism Index ticking down slightly to 97.8. Labor quality and availability continued to be the primary concern for owners, who cited taxes as the next biggest issue. Despite these headwinds, 56% of small businesses are actively hiring, though many report difficulty finding qualified applicants.

Read the full story at tradingview.com.