U.S. stock index futures pared some losses on Wednesday. Inflation posted its biggest monthly increase this year in August as consumers faced higher prices on energy and a variety of other items.
Market Snapshot
At 8:50 a.m. ET, Dow e-minis were down 63 points, or 0.18%, S&P 500 e-minis were down 10.5 points, or 0.23%, and Nasdaq 100 e-minis were down 62 points, or 0.40%.
The consumer price index, which measures costs across a broad variety of goods and services, rose 0.6% for the month, and was up 3.7% from a year ago. Economists surveyed by Dow Jones were looking for respective increases of 0.6% and 3.6%.
However, excluding volatile food and energy, core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Federal Reserve officials focus more on core as it provides a better indication of where inflation is heading over the long term.
Pre-Market Movers
Apple $(AAPL)$ stock turned positive in premarket trading. China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work.
U.S.-listed shares of BP $(BP)$ rose 2.4% in premarket trading after Chief Executive Bernard Looney resigned amid an investigation into new allegations of his personal relationships with colleagues. Looney had pushed for the oil giant's transition to clean energy.
American depositary receipts of NIO and Li Auto $(LI)$ declined over 2%, XPeng $(XPEV)$ was down over 3%. The European Union is launching an antisubsidy investigation into China's electric-vehicle makers, opening a new front in the battle for leadership of the global clean-technology industry.
Grab fell over 8% in premarket trading as Singapore-based ride-hailing company Ryde was seeking to list on the New York Stock Exchange (NYSE). The company intended to raise up to $17 million in an initial public offering (IPO), with no pricing terms disclosed.
Wework crashed over 8% in premarket trading after it rocketed 87% on heavy volume on Tuesday, and have more than doubled in two days. Before that, the company's 1-for-40 reverse stock split took effect at the market open on Sept. 5, which effectively multiplied the stock's price by 40.
Workhorse Group surged nearly 20% in premarket trading as it has received IRS approval as a qualified manufacturer for the Commercial Clean Vehicle Credit under the terms of the Internal Revenue Code.
Rocket Pharmaceuticals $(RCKT)$ jumped 17% after the pharmaceutical company said it reached alignment with the Food and Drug Administration regarding its global Phase 2 trial for treatment of Danon disease, a fatal genetic cardiac disease.
Market News
China Says It Has Not Banned Purchase, Use of Foreign Phone Brands
China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple's iPhones at work.
"China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple's," foreign ministry spokesperson Mao Ning told a regular press briefing when asked about the reports.
China's Electric-Vehicle Makers Face EU Antisubsidy Probe
The European Union is launching an antisubsidy investigation into China's electric-vehicle makers, opening a new front in the battle for leadership of the global clean-technology industry.
The probe, announced Wednesday, reflects growing concern in Europe about the impact of low-price products from China on the bloc's domestic industries. It could result in tariffs if officials from the European Commission, the bloc's executive body, conclude that Chinese EV manufacturers are receiving subsidies that are hurting Europe's auto industry.
VinFast Plans Asia Expansion, to Launch Indonesia Plant in 2026
Vietnamese electric vehicle maker VinFast plans to expand in seven more markets in Asia including Indonesia, where it aims to start deliveries from next year and establish a plant there in 2026.
VinFast aims to invest around $1.2 billion in the Indonesian market in the long-term, according to its latest filing to the to U.S. Securities and Exchange Commission.
Of that, $200 million would be for its Indonesian plant, targeting production in 2026 with an output of 30,000 to 50,000 units each year.
Singapore's Ride-Hailing Platform Ryde Files for US$17 Million IPO on NYSE
SINGAPORE-BASED ride-hailing company Ryde is seeking to list on the New York Stock Exchange (NYSE).
In a preliminary prospectus lodged on Aug 31, the home-grown startup indicated it intended to raise up to US$17 million in an initial public offering (IPO), with no pricing terms disclosed. New York-based investment bank Maxim Group is the sole bookrunner on the deal.
Founded in 2014, the ride-hailing platform differentiated itself by focusing on its carpooling service. It also envisioned becoming a “super mobility app”, offering multiple mobility tools through a single app, according to the prospectus.
Alibaba Opens AI Model Tongyi Qianwen to the Public
Alibaba said on Wednesday it would open its artificial intelligence model Tongyi Qianwen to the public, in a sign it has gained Chinese regulatory approval to mass-market the model.
Authorities in China have recently accelerated efforts to support companies developing AI as the technology increasingly becomes a focus of competition with the United States.
The Alibaba Cloud Intelligence Division said organisations including OPPO, Taobao, DingTalk and Zhejiang University have reached cooperation agreements to train their own large language models or develop language model applications based on Tongyi Qianwen, according to a post published on its WeChat account.