Traders work on the trading floor of the New York Stock Exchange.
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Stock futures were flat Monday as investors await key inflation data for further clues about the duration of this year’s market rally. Earnings from some major financial giants and consumer companies are also on the agenda.
S&P 500 Futures fell marginally while futures were linked to the Dow Jones Industrial Average traded just above the flatline. Nasdaq-100 futures fell about 0.1%.
The S&P 500 is in its fourth positive week in the last five years, amid continued optimism that declining inflation – and possible weaknesses in the economy later this year – could lead to a rate cut by the Federal Reserve.
The June consumer price index, due on Thursday, could bolster those hopes if the headline figure shows a slight improvement, as currently expected. Data on the producer price index is due on Friday.
Last week, labor data reflected a mildly cooling labor market, fueling expectations of a rate cut. But while the U.S. economy added more jobs than expected in June, the unemployment rate also unexpectedly rose to 4.1% from 4%. Traders are currently expecting two rate cuts in 2024, with the first in September, according to the CME FedWatch Tool.
“This [June jobs report] “The upcoming inflation numbers will be key to determining the timing of the first rate cut. Signs of continued moderation in economic growth and the labor market are likely to be positive for equities and high yield bonds, at least in the near term,” said Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors.
A number of major banks, including Citigroup And JPMorgan ChaseThe second quarter earnings season starts this week. PepsiCo And Delta Airlines are also set to post results.
Stocks are coming off a strong week as the S&P 500 and Nasdaq Composite hit record highs and closed at record levels on Friday, with the broad market index notching its 34th record close in 2024. The S&P 500 rose about 0.5% during the day’s session, while the Nasdaq 0.9% up as Tesla And Nvidia Stocks jumped. The 30-share Dow rose 0.17%, or 67.87 points, to also end the week in the green.