#StockMarket #InflationData #FederalReserve
Stock Futures Open Lower as Investors Await Inflation Data This Week
As I await crucial inflation data this week, stock futures have edged lower, reflecting investors' cautious optimism about the longevity of this year's market rally. The S&P 500 has surged approximately 16.7% so far this year, with the index recently wrapping up its fourth positive week out of the last five. Investors remain hopeful that an improving inflation environment and potential weaknesses in the economy later in the year could prompt the Federal Reserve to cut interest rates.
S&P futures exhibited a marginal decrease of 0.1%, while $DJI (Dow Jones Industrial Average) futures were down by 0.15%, equivalent to a loss of 59 points. $NQ (Nasdaq 100) futures also experienced a 0.1% dip.
Market watchers are particularly eyeing the upcoming release of the June consumer price index later this week, which is expected to provide further insight into the inflation outlook. Similarly, data on the producer price index is set to be unveiled on Friday.
Following recent labor market data indicating a slight slowdown, expectations for an interest rate cut have heightened. While the U.S. economy added more jobs than forecasted in June, there was an unexpected uptick in the unemployment rate to 4.1%. Traders are currently pricing in two interest rate cuts for 2024, with the initial cut anticipated in September.
Gregensky, of U.S. fixed income at Janus Henderson Investors, emphasized the significance of upcoming inflation figures in determining the timing of potential rate adjustments. He noted that signs of moderating economic growth and labor market conditions could bode well for equities and high-yield bonds in the short term.
This week will see a flurry of earnings reports from major banks like $C (Citigroup) and $JPM (JPMorgan Chase), as well as from companies such as $PEP (PepsiCo) and $DAL (Delta Air Lines).
Following a robust week in the markets, both the S&P 500 and Nasdaq Composite achieved record highs on Friday, closing at unprecedented levels. The S&P 500 marked its 34th record close this year, with the index climbing around 0.5% during the trading session. Meanwhile, the Nasdaq surged 0.9%, buoyed by strong performances from $TSLA (Tesla) and $NVDA (Nvidia). The Dow also ended the week positively, adding 0.17% to its value.
Original Article: https://www.cnbc.com/2024/07/07/stock-futures-open-lower-as-investors-await-inflation-data-this-week-live-updates-.html
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