Stock Futures Flat Ahead of Inflation Report; Bank of America Hit with Fines
U.S. stock futures remained nearly unchanged ahead of the release of September's consumer inflation data, which is expected to show a rise in year-over-year inflation from 3.4% to 3.6%. The Dow Jones Industrial Average and S&P 500 had closed lower for two consecutive days due to declines in chip stocks like those tracked by the VanEck Semiconductor ETF (SMH), which fell for six straight sessions amid concerns over an AI spending bubble. Bank of America shares dropped more than 2% after hours following a $1.2 billion federal fine related to unreported suspicious transactions totaling over $5 billion. Despite strong quarterly results from several major banks, their stocks ended the day lower as investors raised questions about valuations in high-growth sectors like semiconductors. The S&P 500 is expected to report a blended earnings growth of around 30%, with semiconductor companies leading at over 130%. However, market participants are cautious, questioning how much future demand for chips has already been priced into current valuations.
Topics: banking sector inflation report semiconductors stock market