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Futures down: Dow 0.46%, S&P 500 0.38%, Nasdaq 0.42%
Sept 11 (Reuters) - U.S. stock index futures dipped on
Wednesday, with investors pricing in greater odds of Democrat
Kamala Harris prevailing in the upcoming presidential elections,
while focus moved to a key inflation reading later in the day.
Investors have for weeks been adjusting their expectations
around the Federal Reserve's policy meeting next week and the
inflation data could feed into those. But the U.S. presidential
debate, in which Harris put her Republican rival Donald Trump on
the defensive late on Tuesday, was driving sentiment, analysts
said.
Wall Street remained on edge as the debate offered investors
little clarity on key policy issues, even as betting markets
swung in Harris' favor after the event.
"Relative to Trump, we see Harris' policies as less fiscally
expansionary, less focus on tax cuts," noted Jefferies' chief
Europe economist Mohit Kumar.
After the debate, pricing for a Trump victory slipped by 6
cents to 47 cents on online betting site PredictIt, while
climbing to 57 cents from 53 cents for a Harris win.
Shares of Trump Media & Technology Group ( DJT ), Trump's
media firm, slid 15.2% in premarket trading.
Yields on U.S. government bonds fell across the curve, with
the yield on the 10-year note last at 3.6068%, its
lowest level in more than a year.
Other traditional safe-haven assets such as the Japanese yen
and Swiss franc also rose, while the dollar
index came under pressure.
Later in the day, focus will be on a reading of August
consumer price inflation (CPI), with headline inflation expected
to ease to 2.6% year-on-year, while the "core" figure, which
excludes volatile components like food and energy, is expected
to remain unchanged at 3.2% annually.
This will be followed by the producer prices report on
Thursday.
Traders are all but convinced that the Fed will cut interest
rates when it meets on Sept. 17-18, with 67% tilted toward a
25-basis point cut, according to CME's FedWatch Tool.
The S&P 500 and the Nasdaq closed higher in
choppy trading on Tuesday, while the Dow ended lower as
losses in big banks such as Goldman Sachs ( GS ) weighed.
At 05:22 a.m. ET, Dow E-minis were down 186 points,
or 0.46%, S&P 500 E-minis were down 20.75 points, or
0.38%, and Nasdaq 100 E-minis were down 80.75 points, or
0.42%.
Among other stocks, GameStop ( GME ) dropped 10.8% after the
videogame retailer, which has been at the center of a "meme
stock" frenzy, said it had filed for an offering of up to 20
million shares and reported lower second-quarter revenue.
Cryptocurrency and blockchain-related stocks slipped as
bitcoin, the world's largest cryptocurrency, fell more
than 1%.
Exchange operator Coinbase Global ( COIN ) lost 2.7%,
software firm MicroStrategy ( MSTR ) eased 3.9% and crypto miner
Riot Platforms ( RIOT ) fell 2.1%.