United States' stock futures traded in a mixed fashion on Sunday (Monday AEDT) as Wall Street prepares for a pivotal week, including the release of inflation data and the start of the fourth-quarter earnings season.
Futures linked to the Dow Jones Industrial Average gained 30 points, or 0.07%, while S&P 500 futures edged down by 0.08%. Nasdaq 100 futures slipped 0.06%.
Investors are closely monitoring this week's developments following last week's stronger-than-expected nonfarm payroll report, which sent equities tumbling amid concerns that the Federal Reserve may adopt a cautious stance on future interest rate cuts.
Earnings season will kick off with major banks, including Citigroup, Goldman Sachs, and JPMorgan Chase, reporting results on Wednesday (Thursday AEDT), while Morgan Stanley and Bank of America will release their earnings during the following session.
Last week, the Dow and S&P 500 both declined 1.9%, while the Nasdaq Composite dropped 2.3%, marking their second consecutive weekly losses.
Traders currently assign over a 97.3% probability that the Federal Reserve will keep rates unchanged at its 29 January meeting, with a 75.9% chance of a similar decision in March, according to the CME FedWatch Tool.
This week's economic data includes December's consumer price index (CPI), set for release on Wednesday morning, which will provide further clarity on inflation trends. Ahead of that, the December producer price index (PPI) report, due Tuesday, will offer insights into wholesale inflation.
Additionally, Wall Street awaits remarks from Kansas City Fed President Jeffrey Schmid and New York Fed President John Williams on Tuesday, which could offer hints on the central bank's monetary policy outlook.