

Market Analysis
Wall Street futures pointed lower as investors weighed the upcoming US inflation data and the aftermath of a fiery debate between presidential hopefuls Donald Trump and Kamala Harris. Despite their heated exchange, the candidates provided little clarity on their economic plans. Meanwhile, GameStop (NYSE) shares fell during after-hours trading following its decision to issue new shares, despite a decline in quarterly revenue.
1. Futures Slip
US stock futures edged lower on Wednesday as investors reacted to the debate between Trump and Harris, while keeping an eye on the upcoming release of US inflation figures. The data is seen as pivotal in shaping the Federal Reserve’s future monetary policy.
By 03:34 ET (07:34 GMT), Dow futures were down 95 points or 0.2%, S&P 500 futures had dropped 11 points or 0.2%, and Nasdaq 100 futures had slipped 47 points or 0.3%.
While both the S&P 500 and Nasdaq Composite gained ground in the previous session, marking two consecutive days of advances for the first time since mid-August, the Dow Jones Industrial Average declined. Bank shares led the retreat after JPMorgan Chase (NYSE) warned that analysts' earnings forecasts for next year might be overly optimistic. Earlier in the week, Goldman Sachs CEO David Solomon had also forecasted a 10% dip in the bank's trading revenues for the current quarter.
Investors are now focused on the US consumer price index (CPI) for August, a key inflation gauge. The reading could offer clues about the potential size of the Federal Reserve's next interest rate decision at its upcoming meeting.
2. Trump-Harris Debate Leaves Wall Street Wanting More
Republican nominee Donald Trump and Democratic contender Kamala Harris traded sharp remarks in a tense debate on Tuesday, sparring on topics ranging from immigration to economic policy.
Despite the highly anticipated showdown, which comes as the two candidates are neck and neck in national polls, neither provided much detail on their plans for taxes, tariffs, or regulatory changes—issues that matter to investors.
Trump has pledged to cut corporate taxes and take a more aggressive stance on tariffs, while Harris has proposed raising corporate taxes. Analysts believe Trump's plan could boost corporate profits but risk fueling inflation, whereas Harris's tax hike may reduce company earnings.
During the debate, Harris criticized Trump’s tariffs on foreign goods, calling them a "tax on the middle class." Trump defended his policy, insisting it would not lead to higher prices for consumers and attacked Harris over inflation during the Biden administration.
Following the debate, the Chinese yuan strengthened against the US dollar, reversing some of the weakness it experienced during trade tensions under Trump’s previous presidency.
3. GameStop Shares Tumble After New Share Issuance Announcement
GameStop shares plunged more than 10% in after-hours trading after the company announced plans to issue 20 million new shares, despite posting lower revenue for the second quarter.
The video game retailer, a central figure in the 2021 meme-stock phenomenon, said it would use the funds for "general corporate purposes," including potential acquisitions and investments.
For the quarter ending August 3, GameStop reported revenue of $798.3 million, down from $1.16 billion in the same period last year. The revenue decline highlights the ongoing pressure from the shift to digital gaming and weak performance at its brick-and-mortar stores.
4. Chinese Biotech Stocks Rebound After US House Bill Concerns
Shares of several Chinese biotech firms listed in Hong Kong recovered on Tuesday, following a sell-off driven by concerns over a new US House bill.
WuXi AppTec (SS:603259), Beigene (HK:6160), Akeso (HK:9926), and Sino Biopharmaceutical (HK:1177) all traded higher, recovering some of their earlier losses.
The stocks had dropped after the US House passed a bill that would restrict their operations in the US due to national security concerns, specifically over access to Americans' health and genetic data. The bill now heads to the Senate for approval before it can be signed into law by President Biden.
5. Oil Prices Rebound Amid Supply Worries
Oil prices rose in European trading on Wednesday as markets assessed the potential impact of Hurricane Francine on production in the Gulf of Mexico.
Prices also gained support from industry reports showing an unexpected draw in US oil inventories. However, oil markets were still recovering from sharp losses on Tuesday, spurred by weak Chinese import data and a downward revision of the Organization of the Petroleum Exporting Countries’ (OPEC) demand forecast.
By 03:34 ET, Brent crude futures for November delivery rose 1.3% to $70.11 per barrel, while West Texas Intermediate crude futures increased by 1.4% to $66.05 per barrel.
Paraphrasing text from "Investing" all rights reserved by the original author.