United States futures edged higher on Monday evening (Tuesday AEDT) as investors awaited the release of two critical inflation reports this week.
By 10:10 am AEDT (11:10 pm GMT) futures tied to the Dow Jones Industrial Average climbed 0.2%. S&P 500 futures rose 0.3%, while Nasdaq 100 futures advanced 0.4%.
The movement follows a mixed trading session on Monday, where the Nasdaq Composite fell for the fourth consecutive day as traders rotated out of major technology stocks. Nvidia, for instance, declined 2%. Conversely, the Dow Jones Industrial Average gained 0.9%, driven by strong performances from energy and health care stocks, including Chevron and UnitedHealth.
Investors are focused on Tuesday’s producer price index (PPI) report, which measures wholesale inflation. Markets anticipate headline PPI to have grown by 0.3% in December. The consumer price index (CPI), another crucial inflation gauge, is due on Wednesday.
Both inflation reports are expected to influence the Federal Reserve's upcoming interest rate decisions, particularly in light of last week’s robust jobs data. Market pricing indicates a near-certainty that the Fed will keep rates steady at its next meeting later this month, with an 80.2% probability of maintaining the current target range of 4.25%-4.5% in March, according to the CME FedWatch Tool.
On the earnings front, the fourth-quarter reporting season begins this week, led by major financial institutions. JPMorgan Chase, Citigroup, Goldman Sachs, and Wells Fargo will release results on Wednesday, followed by Morgan Stanley and Bank of America on Thursday.