Traders work on the floor of the New York Stock Exchange.
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Stock futures fell Sunday night as investors awaited key inflation data for more clues on the length of this year’s market rally. Earnings from some financial giants and consumer companies are also on the docket.
S&P 500 futures fell 0.1%, while Dow Jones Industrial Average futures lost 31 points, or about 0.1%. Nasdaq 100 futures were flat below flat.
The S&P 500 is up about 16.7% this year, and the benchmark just notched its fourth positive week in the past five amid continued optimism that an improving inflation backdrop — and any pockets of weakness in the economy later this year — could lead to interest rate cuts by the Federal Reserve.
The June CPI, due out on Thursday, could boost those hopes if the headline figure shows a slight improvement, as is currently expected. The PPI data is due out on Friday.
Last week, labor data reflected a slight slowdown in the labor market, sparking expectations of a rate cut. But while the U.S. economy added more jobs in June than expected, there was also an unexpected rise in the unemployment rate, to 4.1% from 4%. Traders are now expecting two rate cuts in 2024, the first in September, according to data from the U.S. central bank. CME FedWatch Tool.
“this [June jobs report] “Upcoming inflation data remains the key factor in determining the timing of the first rate cut,” said Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors. “Signs of continued slowing economic growth and the labor market are likely to be positive for stocks and high-yield bonds at least in the near term.”
A host of major banks, including Citigroup Inc. and JPMorgan Chase Inc., will kick off their second-quarter earnings season this week. PepsiCo Inc. and Delta Air Lines Inc. are also scheduled to report results.
Stocks are headed higher after a strong week, with the S&P 500 and Nasdaq Composite hitting all-time highs on Friday and closing at record closing levels, with the broad market index posting its 34th record close of 2024. The S&P 500 jumped about 0.5% during the session, while the Nasdaq advanced 0.9% as shares of Tesla and Nvidia rose. The 30-stock Dow Jones added 0.17%, or 67.87 points, to end the week in the green as well.
