Futures rise following turbulent week; U.S. inflation in focus
By Bansari Mayur Kamdar and Johann M Cherian
(Reuters) -U.S. stock index futures rose on Monday after a rough week when elevated bond yields pressured rate-sensitive stocks, with all eyes now on a highly awaited U.S. inflation report that offers the latest test to Wall Street's sharp recovery this year.
Wall Street's main indexes ended the week lower on Friday with some investors taking profits after months of gains due to economic data, mixed earnings and rising Treasury yields.
U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 clocking 16.6% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy.
Both Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM) last week ditched their forecasts for a U.S. recession.
Investors are focused on U.S. consumer price reading on Thursday that could offer cues to the Federal Reserve's monetary policy path, after an employment report on Friday re-ignited fears that the central bank could keep rates higher for longer.
«In our view, the picture on the labor market remains mixed,» Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note.
«While the data does not support a rate hike from the Fed’s next policy meeting on 20 September, the central bank will likely want to see further softening.»
New York Fed President John Williams, a voting member this year, said he expects interest rates could begin to come down in early 2024, as per a New York Times report. Investors will also parse comments, expected later in the day, by Fed Board Governor Michelle Bowman.
At 6:58 a.m. ET, Dow e-minis were up 43 points, or 0.12%, S&P 500 e-minis were up 11 points, or 0.24%, and Nasdaq
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