Traders work on the floor of the New York Stock Exchange.
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Stock futures were flat on Monday as investors awaited key inflation data for further clues about the sustainability of this year’s stock market rally. Earnings from several major financial and consumer companies are also in focus.
S&P 500 Futures Futures fell slightly, Dow Jones Industrial Average It traded just above the flatline. Nasdaq 100 Futures It fell by about 0.1%.
of S&P 500 It was the fourth positive week of the past five amid continued optimism that easing inflation and easing economic weakness later this year could lead to interest rate cuts from the Federal Reserve.
The June Consumer Price Index, due out on Thursday, could bolster those hopes if the headline figure shows a slight improvement, as currently expected. Producer Price Index data is due out on Friday.
Labor data released last week reflected a slight cooling in the labor market, bolstering expectations for a rate cut. However, while the U.S. economy added more jobs than expected in June, the unemployment rate unexpectedly rose to 4.1% from 4%. Traders are now expecting two rate cuts in 2024, with the first coming in September, according to the CME FedWatch tool.
“this [June jobs report] “Upcoming inflation data will be key in determining the timing of the first rate cut. Signs of continued slowing in economic growth and the labor market would be positive for stocks and high-yield bonds, at least in the near term,” said Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors.
Many of the major banks have Citigroup and JPMorgan Chasekicks off its second-quarter earnings season this week. PepsiCo and Delta Airlines The results will also be announced.
The stock market is coming off a strong week, with the S&P 500 and Nasdaq Composite hitting all-time highs on Friday and closing at record highs, marking the broader market index’s 34th all-time high of 2024. The S&P 500 was up about 0.5% in intraday trading; Nasdaq 0.9% increase Tesla and NVIDIA Stocks surged, with the Dow Jones Industrial Average rising 0.17%, or 67.87 points, to also end the week in the positive.
