Traders on the trading floor of the New York Stock Exchange on August 4, 2022.
Source: New York Stock Exchange
Stock futures edged higher in overnight trading Monday as investors awaited a key inflation report that could inform the direction of the Federal Reserve’s monetary policy.
Dow Jones Industrial Average futures rose 40 points. S&P 500 futures edged up 0.2%, while Nasdaq 100 futures rose 0.3%.
All eyes will be on the February Consumer Price Index, which is scheduled to be released Tuesday at 8:30 a.m. ET. Economists surveyed by Dow Jones forecast a monthly growth rate of 0.4% and an overall growth rate of 3.1%.
A rise in January’s consumer price index (CPI) data unnerved markets and prompted Fed officials to subsequently shift their rhetoric to a more cautious tone on easing policy. Current market pricing indicates whether the Fed will cut interest rates at its March 19-20 or April 30-May 1 meeting.
“Consumer prices are likely to be higher in February due to higher gasoline prices, but core inflation is likely to slow further as auto prices fall and rent increases slow,” said Bill Adams, chief economist at AlliedSign.
The tech-led market rally has lost steam of late as some of this year’s biggest winners continue to retreat. Nvidia fell another 2% on Monday and fell more than 5% on Friday, its largest one-day drop since May 2023.
Several other members of The Magnificent Seven have also recently quit. Apple shares have fallen 8.5% in the past month, while Alphabet has fallen 7.6%. Microsoft fell nearly 4% over the same period, and Tesla fell 8.2%.
Mark Hackett, head of investment research at Nationwide, said: “As the market expands beyond large-cap technology stocks, investors can expect to see more consolidation and fairly modest returns in high-level market indexes.”
About The Author
