United States stock futures rose modestly Sunday evening (Monday AEST) as markets hovered near all-time highs ahead of a week packed with critical inflation data.
By 9:20 am AEST (11:20 pm GMT) Dow futures, S&P 500 futures and Nasdaq 100 futures each climbed 0.1%.
The gains follow a strong finish last week, with the Nasdaq Composite reaching record closing levels and the S&P 500 closing close to a significant milestone.
The Dow also ended the week positively, supported in part by a rally in Apple shares, which had lagged earlier in the year.
Despite recent advances, some investors remain cautious, given lofty valuations, a weakening macroeconomic outlook, ongoing tariff impacts, and seasonal market softness. Inflation data this week will be pivotal for the market’s trajectory, especially for the Federal Reserve’s September policy meeting.
The consumer price index (CPI), due Tuesday, and the producer price index (PPI), scheduled for Thursday, will provide critical insights into inflation trends. Hotter-than-expected readings could challenge the market’s advance and influence the Fed’s approach to interest rates.
ANZ analysts commented, “We expect July core CPI inflation rose 0.3% month-on-month, taking the annual rate to 3.0% year-on-year from 2.9%. Low gasoline prices will lead to a slower 0.2% month-on-month in headline inflation. Higher tariffs are becoming more visible in goods prices.”
The inflation release precedes the Federal Reserve’s Jackson Hole symposium in Wyoming from 21 - 23 August, where market participants anticipate signals regarding the outlook for the September meeting.
