Stock futures inch higher after S&P, Nasdaq fall to start the week
U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later this week.
Futures contracts tied to the Dow Jones Industrial Average added 0.1%. S&P 500 futures gained 0.16%, while Nasdaq 100 futures were up 0.24%.
During regular trading the S&P 500 slid 0.37%, while the Nasdaq Composite shed 0.58%. Both traded higher earlier in the day, before reversing course during the final hour of trading. Each index managed to close above its worst level of the session, however.
The Dow Jones Industrial finished Monday's trading session just 1 point higher. At one point the 30-stock benchmark had added 235 points. At the lows of the day, the Dow declined by about 95 points.
«U.S. stocks will struggle for direction until the latest inflation tilts market's expectations as to how aggressive the Fed will tighten into what is still deemed as an overvalued stock market,» said Oanda's Edward Moya.
On Thursday the Labor Department will release January's consumer price index data. The reading follows a stronger-than-expected January jobs report, which has led to speculation that the Federal Reserve could be more aggressive when it comes to hiking rates. The inflation data is expected to show that prices rose 0.4% in January, for a 7.2% gain from one year ago.
Bank of America said Monday that the Federal Reserve could implement seven quarter-percentage-point rate hikes this year.
«The tumultuous market action continues as the combination of Fed policy uncertainty and economic transition remains in focus,» Canaccord Genuity said Monday in a note to clients.
«Unfortunately, this is the environment we are going
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