© Reuters.
Investing.com – U.S. stock futures were mostly higher on Wednesday as crucial inflation data is released from the global economy later this week. Elsewhere, prices swung wildly in the wake of a false post on the SEC’s account on social media platform Aircraft industry.
1. Futures are broadly higher
US stock futures rose mostly into the green on Wednesday as investors awaited the release of key inflation numbers later in the week.
By 05:20 EDT (10:20 GMT), the contract was unchanged, added 7 points or 0.1%, and rose 66 points or 0.4%.
Wall Street’s major averages were mixed at the close of trading in the previous session. Shares of the 30 companies fell by 0.4% and the benchmark index fell by 0.2%, while shares of heavy technology companies rose by 0.1%.
Markets are preparing for the release of the US December CPI on Thursday, an important piece of economic data that could influence how the Federal Reserve handles potential interest rate cuts this year. While the Fed has set a dire outlook for the path of borrowing costs in 2024, many policymakers have recently moved to temper optimism about the potential for a cut as early as this year. Enthusiasm over a potential Fed pivot, which sent stocks higher in the final weeks of 2023, later waned.
2. A false post on social media sparks Bitcoin volatility
The price of Bitcoin fell on Wednesday after a false post on social media platform X sparked sharp swings in the world’s most popular cryptocurrency.
The fake statement issued on Tuesday appears to show that the US Securities and Exchange Commission has for the first time approved bitcoin exchange-traded funds (ETFs) “for listing on all registered national securities exchanges.”
However, SEC Chairman Gary Gensler announced just minutes later that the post was not real, adding that the regulator’s official X account had been “hacked.” The false post has been deleted.
“The SEC has not approved the listing and trading of Bitcoin exchange-traded products,” Gensler said on his personal X account.
Bitcoin jumped after the original SEC publication, but later fell after Gensler revealed it was fake. Anticipation has been intense over the potential approval of spot bitcoin ETFs, which cryptocurrency proponents say will spur a flood of capital flows into the digital asset.
3. Boeing CEO calls 737 MAX explosion “our fault”
Boeing CEO Dave Calhoun admitted that the dangerous mid-air explosion of a door panel on one of its 737 MAX planes last week was “our fault.”
Speaking to employees at a town hall meeting at the 737 plant in the US state of Washington, Calhoun said such an accident “can never happen again”, adding that the aircraft giant recognizes “the real seriousness of the incident”.
Calhoun described himself as “shaken to the bone” and made what was the first public admission of Boeing’s wrongdoings. A door seal broke off the side of a 737 MAX 9 operated by Alaska Airlines last Friday, although the pilots were able to land safely with no deaths reported.
But scrutiny has once again tightened around Boeing and its iconic 737 MAX, the family of single-aisle jets that were at the heart of an earlier safety crisis following deadly crashes in Indonesia and Ethiopia in 2018 and 2019.
4. Tesla launches the redesigned Model 3 in North America
Tesla (NASDAQ:) has released an updated version of its Model 3 sedan in North America after it was previously launched in China and Europe.
According to the electric car maker’s website, revamped features include a rear screen for rear seat passengers, redesigned wheels, and two new color options – ‘Ultra Red’ and ‘Stealth Grey’.
The “Performance” version of the Model 3 – the most expensive version of the car – has also been removed from Tesla’s North American websites.
Only the Long Range and Real Drive versions are now listed, while their prices remain unchanged at $45,990 and $38,990 respectively. Both became ineligible for a major US federal tax credit last year.
5. Oil prices are volatile after the strong withdrawal of the API index
Oil prices were volatile on Wednesday, as traders monitored supply disruptions in the Middle East and industry data indicating mixed US inventories.
By 05:16 ET, futures were trading 0.6% lower at $71.82 per barrel, while the contract was down 0.6% at $77.13 per barrel.
The two benchmarks rebounded largely after a weak start to the week, when Saudi Arabia, the largest exporter of crude oil, cut export prices on fears of tightening markets due to disruptions in Middle East supplies.
American Petroleum Institute data, released late Tuesday, showed that US crude oil inventories fell by a larger-than-expected 5.2 million barrels in the week ending January 5.
But American Petroleum Institute data also showed another week of strong increases in gasoline and distillate inventories, raising doubts about demand from the world’s largest fuel consumer. These numbers could be exacerbated by a massive winter storm that has hit several parts of the country, further restricting ground travel.