US stock futures lower; inflation data, banks' earnings due
Investing.com — U.S. stock futures edged lower Monday, with investors nervous ahead of the release of crucial inflation data that could influence future Federal Reserve thinking over potential interest rate cuts.
By 06:50 ET (11:50 GMT), the Dow Futures contract was down 160 points, or 0.4%, S&P 500 Futures traded 4 points, or 0.1%, lower, while Nasdaq 100 Futures traded largely flat.
Wall Street suffered a disappointing start to the year last week, posting its first losing week in 10 as investors reassessed the chances of early rate cuts by the U.S. central bank in 2024.
The blue-chip Dow Jones Industrial Average dropped 1.5% last week, the broad-based S&P 500 slid 0.6%, and the tech-heavy Nasdaq Composite posted its worst weekly performance since September, falling 3.3% as Treasury yields rose.
Friday’s monthly U.S. jobs report came in stronger than expected, and coupled with the minutes from the last Fed meeting, has elevated uncertainty over what the U.S. central bank intends to do with interest rates early in the new year.
Dallas Fed boss Lorie Logan even warned on Saturday that rates could even be lifted again.
«If we don't maintain sufficiently tight financial conditions, there is a risk that inflation will pick back up and reverse the progress we've made,» she said. «In light of the easing in financial conditions in recent months, we shouldn't take the possibility of another rate increase off the table just yet.»
Thursday’s U.S. inflation data could offer greater clarity, with U.S. CPI seen rising by 0.2% month-on-month, an annual increase of 3.2%.
The crucial core figure is rising by 0.2% month-on-month, dragging the annual pace down to 3.8%, a level not seen since mid-2021.
Atlanta Fed President Raphael Bostic
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