Key Asian stock gauges fluctuated Wednesday after the S&P 500 hit a record on hopes the Federal Reserve will cut interest rates to curb a jobs downturn.
Shares in South Korea rose in early trading, while those in Japan and Australia were mixed. US equity futures contracts edged higher after Big Tech lifted the index on Tuesday, even as most shares fell and Apple Inc. sank following its iPhone 17 launch. Treasuries edged higher early Wednesday. Oil extended gains after an Israeli attack in Qatar revived fears of an escalation of the Middle East conflict.
After fresh signs of a cooling labor market, investors are bracing for inflation reports in the coming days that will help shape next week's Fed meeting and the path of rate cuts into 2025 -- a key test for whether Wall Street can sustain this month's rally. Money markets are almost fully projecting three Fed cuts this year, with US producer and consumer price index data due this week.
"The markets appear to believe will be enough to protect the US economy from a recession, judging by current risk appetite," said Kyle Rodda, a market analyst at Capital.com in Melbourne. "A spicy inflation print would complicate this situation and force the Fed into potential nasty trade offs between the labor market and price stability."