Traders work on the NYSE trading floor on January 10, 2025 in New York City.
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Stock index futures rose late Monday as investors braced for the first of two inflation data releases this week.
Futures and Dow Jones Industrial Average Up 58 points, or about 0.1%. S&P 500 Index Futures rose 0.2%, while Nasdaq 100 Futures up 0.4%.
The action took place in Nasdaq Index It fell for a fourth straight day in regular trading. Traders pulling back from big tech companies, e.g. NVIDIAIt fell nearly 2%, with stocks in the energy, health care and materials sectors snapped up. 30 stocks Dow Chemical Up nearly 0.9% as traders buy Chevron and UnitedHealth.
Looking ahead to Tuesday, the producer price index, which measures wholesale inflation, will be released at 8:30 a.m. ET. Economists polled by Dow Jones forecast overall PPI growth of 0.4%, while the core data excluding food and energy would rise 0.3%.
As investors grapple with last week’s blowout jobs report, December’s PPI indicator and Wednesday’s Consumer Price Index report will serve as market catalysts. The upcoming inflation report will provide information for the Federal Reserve’s next interest rate policy moves.
“In the short term, the market has returned to a good news is bad news backdrop,” said Adam Turnquist, chief technical strategist at LPL Financial. “However, it’s important to remember that in the long term, good economic news is generally good for It’s positive for stocks because it means better-than-expected growth, higher underlying earnings, and lower recession risks.”
Federal funds futures trading suggests the Fed is almost certain to keep rates on hold at the end of its two-day meeting later this month. According to market pricing, there is an 80% chance that March interest rates will remain at the current target range of 4.25%-4.5% CME Group’s Federal Reserve Watch tool.
On the earnings front, banking giants will kick off the fourth-quarter earnings season this week, JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo The results will be announced on Wednesday. Morgan Stanley and Bank of America The report is due to be released on Thursday.
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