New York – Stock futures showed a slight increase in overnight trading on Monday as investors eagerly awaited a crucial inflation report that could impact the Federal Reserve’s monetary policy decisions. The Dow Jones Industrial Average futures rose by 40 points, while the S&P 500 futures edged up by 0.2% and Nasdaq 100 futures gained 0.3%.
The spotlight is on the February consumer price index (CPI) reading, scheduled for release on Tuesday at 8:30 a.m. ET. Economists surveyed by Dow Jones are predicting a monthly increase of 0.4% and a 3.1% rise in the headline figure.
Following an uptick in January’s CPI data, which led to market volatility and a shift in the Federal Reserve’s tone on policy, expectations are high for the upcoming report. Market indicators currently suggest that the Fed is unlikely to cut interest rates at its March 19-20 or April 30 to May 1 meetings.
Chief economist Bill Adams from Comerica Bank speculates that February’s CPI index may have been influenced by higher gasoline prices but expects core inflation to moderate due to decreases in car prices and rent hikes.
The recent slowdown in the technology-led market rally has seen major players like Nvidia, Apple, Alphabet, Microsoft, and Tesla experiencing declines in their share prices. This shift has prompted Nationwide’s chief of investment research, Mark Hackett, to anticipate more consolidation and modest returns in high-level market indexes as investors diversify their portfolios.
Overall, market participants are keeping a close eye on the upcoming inflation report as it could provide insights into the future trajectory of the Federal Reserve’s policies and the broader market landscape.