US STOCKS-Wall St eyes lower open as inflation data adds fuel to rate hike jitters

Reuters

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        * 
      Consumer spending rebounds in August but inflation picks
up 
    

        * 
      Wall Street set for third straight quarterly decline
    

        * 
      Nike down 10% after warnings on gross margins
    

        * 
      Futures down: Dow 0.19%, S&P 0.10%, Nasdaq 0.22% 
    

  
 (Updates prices through out)
    By Ankika Biswas and Shreyashi Sanyal
       Sept 30 (Reuters) - U.S. stock indexes were set to fall
at the open on Friday as resilient core inflation in August
stoked fears of more big-sized interest-rate hikes denting a
rebound in consumer spending.
    Data showed the core personal consumption expenditures price
index jumped 0.6% after being unchanged in July. It climbed 4.9%
on a year-on-year basis in August after increasing 4.7% in July.
 urn:newsml:reuters.com:*:nL1N3102OK
    "What we need to see is decreasing inflation on a sequential
basis and we're just not seeing that yet," said Art Hogan, chief
market strategist at B. Riley Wealth.
    "This is not going to change that hawkish scenario that has
been driving equities lower and why we're getting the kind of
reaction we're seeing now."
    Wall Street has faced heavy losses in a tumultuous month on
concerns of an economic downturn fueled by the Federal Reserve's
aggressive push to curb soaring prices.  urn:newsml:reuters.com:*:nL1N3102OK
    Fed funds futures showed traders see a 68% chance of the
U.S. central bank raising rates by 75 basis points at its
November meeting, up from 61% odds before the inflation data.
 urn:newsml:reuters.com:*:nL1N31115W   
    The U.S. central bank's ultra-hawkish stance on interest
rate hikes have sharply affected market sentiment for
risk-taking, with all the three major indexes now in bear market
and set for their third straight quarterly decline.
    The Dow Jones Industrial Average  .DJI  was set for its
worst month since pandemic lows. The S&P 500  .SPX  has slumped
nearly 8% so far in September, testing its lowest level since
November 2020, while the Nasdaq  .IXIC  has lost over 9% during
the month and tested its lowest level in two years.
    Investors will also keenly listen to commentaries from Fed
Vice Chair Lael Brainard, Governor Michelle Bowman, Richmond
President Thomas Barkin and New York President John Williams for
further clues on the central bank's aggressive monetary policy. 
        At 9:12 a.m. ET, Dow e-minis  1YMcv1  were down 56
points, or 0.19%, S&P 500 e-minis  EScv1  were down 3.5 points,
or 0.1%, and Nasdaq 100 e-minis  NQcv1  were down 25.25 points,
or 0.22%.
    Shares of rate-sensitive Tesla Inc  TSLA.O , Amazon.com
 AMZN.O , Meta Platforms  META.O , Alphabet Inc  GOOGL.O  and
Microsoft Corp  MSFT.O  also dipped between 0.1% and 0.6% in
premarket trading. 
    Nike Inc  NKE.N  slid more than 12% after the world's
largest sportswear marker warned that gross margins would remain
under pressure this year due to ramped up discounts and a
rapidly strengthening dollar.  urn:newsml:reuters.com:*:nL4N3103WB    
 (Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru;
Additional reporting by Bansari Mayur Kamdar Editing by Arun
Koyyur)
 ((Ankika.Biswas@thomsonreuters.com;))

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