Investing.com — Wall Street stock futures are trending lower as traders focus on upcoming U.S. inflation data and the debate between U.S. presidential candidates Donald Trump and Kamala Harris. The two candidates traded sharp punches, but investors got few details on either candidate's economic policies. Meanwhile, shares of U.S. video game retailer GameStop (NYSE:) fell in after-hours trading after the company said it would issue new shares despite reporting a decline in quarterly revenue.
1. Futures fall
U.S. stock futures fell on Wednesday as investors waited to gauge the outcome of a heated debate between presidential candidates Donald Trump and Kamala Harris and ahead of the release of the latest U.S. inflation data that could influence the Federal Reserve's future monetary policy.
By 3:34 a.m. ET (7:34 a.m. GMT), the contract was down 95 points, or 0.2 percent, down 11 points, or 0.2 percent, and down 47 points, or 0.3 percent.
Both index and tech stocks rose in yesterday's trading, marking the first time the average has posted two consecutive days of gains since mid-August.
But the 30 stocks fell, along with bank stocks, after JPMorgan Chase (NYSE:) warned that analysts' consensus estimates for next year's profits were too optimistic. Earlier this week, Goldman Sachs CEO David Solomon also warned that the investment bank's trading revenues will fall 10% this quarter.
Traders are now awaiting the release of August's U.S. Consumer Price Index, a key measure of inflation, which may offer some clues as to how much the Fed may cut rates at its next two-day meeting later this month.
2. Trump-Harris offer few details to Wall Street
Republican presidential nominee Donald Trump and his Democratic opponent Kamala Harris traded harsh words in a heated debate on Tuesday, clashing on everything from immigration to the economy.
After the highly anticipated event, which came with Trump and Harris neck and neck in national polls, investors were given few details about how the candidates will tackle key issues such as tariffs, taxes and regulations.
During the election, Trump pledged to slash corporate taxes and take a tough stance on tariffs, while Harris has pledged to raise them. Analysts predict that Trump's plan could boost corporate profits but also boost inflation. But they also say Harris' proposal could squeeze corporate profits.
During the debate, Harris criticized Trump's policies of imposing high tariffs on foreign goods, arguing that they are effectively a tax on the middle class. Trump defended the plan, saying it would not lead to higher prices for Americans, and criticized Harris for overseeing a period of high inflation during Biden's term in office.
The dollar, which was hit by trade tensions between Washington and Beijing during President Trump's previous tenure, has strengthened against the greenback.
3. GameStop issues additional shares
Video game retailer GameStop Corp.'s shares fell by more than a tenth in after-hours trading after the company said it would issue more stock despite reporting falling second-quarter revenue.
The company, which has become known as the epicenter of 2021's meme stock boom, said it would use the proceeds from the offering of 20 million new shares for “general corporate purposes,” including potentially “acquisitions and investments consistent with our investment policy.”
GameStop reported sales of $798.3 million for the quarter ended Aug. 3, down from $1.16 billion in the same period a year ago, as the company continues to face pressure from rising online game purchases and weaker performance at its physical stores.
4. Chinese biotech companies rebound as stock prices continue to fall over U.S. House bill
Shares in several Hong Kong-listed Chinese biotechnology companies recovered slightly on Tuesday after plummeting in the wake of the U.S. House of Representatives bill.
Wuxi AppTec (SS:), Beigen (HK:), Akeso (HK:) and Sino Bio Pharmaceutical (HK:) all rose.
The company's shares fell earlier this week after the U.S. House of Representatives passed a bill to restrict the company's operations in the U.S. on national security grounds, a measure that supporters say is necessary to protect Americans' personal health and genetic information.
The bill still needs to pass the U.S. Senate before being signed into law by President Joe Biden.
5. Oil prices rebound amid supply concerns
European crude oil prices rose on Wednesday as traders waited to assess the impact of Hurricane Francine on production in the Gulf of Mexico.
Prices also received some support from industry data showing an unexpected decline in weekly U.S. crude oil inventories.
But oil markets have fallen sharply since Tuesday as disappointing Chinese import data and a cut in OPEC demand forecasts darkened the outlook for the oil market.
The price of November crude rose 1.3% to $70.11 a barrel, while crude futures rose 1.4% to $66.05 a barrel by 3:34 a.m. Eastern time.
