NEW YORK, Oct 11 — Wall Street’s main indexes were set to open higher today as US Treasury yields continued to retreat, while investors assessed the latest inflation data and awaited minutes from the Federal Reserve’s last policy meeting.

A Labour Department report showed the producer price index for final demand increased 0.5 per cent last month compared with estimates of a 0.3 per cent increase, ahead of tomorrow’s closely watched consumer inflation data.

The core figure, which excludes volatile food and energy components, rose 0.3 per cent month-on-month versus estimates of a 0.2 per cent increase.

"The market is responding as if this were essentially a non-event, something that had been anticipated and not something that would cause the Fed to change their inflationary direction,” said Sam Stovall, chief investment strategist at CFRA Research.

Minutes from the Fed’s September meeting, where policymakers held rates steady, are expected at 2pm ET (2am Malaysian time0 and would be crucial in assessing the central bank’s outlook on interest rates.

Yields on government bonds have eased from their multi-year highs on dovish remarks from Fed officials earlier this week.

However, Fed Governor Michelle Bowman on Wednesday repeated her view that despite "some progress” on inflation, the US central bank will probably need to tighten monetary policy further to restore price stability.

Central bank officials such as Fed Governor Christopher Waller, Atlanta Fed President Raphael Bostic and Boston Fed President Susan Collins are also scheduled to speak today.

Megacap stocks Microsoft, Alphabet, Tesla , Nvidia and Meta Platforms advanced between 0.3 per cent and 0.8 per cent in premarket trading.

Meanwhile, the conflict in Middle East raged on as Israel bombed Gaza overnight ahead of a potential ground assault against Palestinian Islamist group Hamas.

Israel’s death toll reached 1,200 with more than 2,700 wounded, its military said, while retaliatory strikes on the blockaded enclave have killed 1,055 people and wounded 5,184, according to Palestinian officials.

The debut of German luxury sandal maker Birkenstock Holding on the New York Stock Exchange will also be keenly watched. The company has priced its IPO at the middle of its indicated price range at US$46 per share.

At 8:41 a.m. ET, Dow e-minis were up 58 points, or 0.17 per cent, S&P 500 e-minis were up 7.25 points, or 0.17 per cent, and Nasdaq 100 e-minis were up 38.75 points, or 0.25 per cent.

Walgreens Boots Alliance added 2.1 per cent after the pharmacy chain operator said it has appointed Tim Wentworth as its new chief executive.

Arista Networks fell 1.7 per cent after Piper Sandler downgraded the cloud networking solutions provider’s stock.

Exxon Mobil lost 3.1 per cent as the oil and gas producer is set to buy shale producer Pioneer Natural Resources in an all-stock deal valued at US$59.5 billion. Pioneer was up 1.8 per cent.

Drugmaker Eli Lilly gained 2.6 per cent following the early success of Danish rival Novo Nordisk’s Ozempic in a trial to treat kidney failure, while dialysis firms DaVita and Baxter International slumped 16.7 per cent and 9.3 per cent, respectively. — Reuters