U.S. stock index futures were little changed in overnight trading on Monday after a quiet session on Wall Street as expectations of key inflation data later this week deterred any big trades.
But Wall Street appears to have found some calm after last week’s wild swings, as speculation about a U.S. recession exacerbated volatility in stock markets.
The index settled at 5,471.0 points, while it settled at 18,645.25 points by 19:06 ET (23:06 GMT). The index rose slightly to 39,402.0 points.
Consumer price inflation awaits more signals for rate cuts
This week’s focus is entirely on inflation data, due out on Wednesday, for further clues about the US economy.
Analysts expect inflation to fall slightly in July compared to the previous month, which increases confidence in the decline in inflation and gives the Federal Reserve more room to start cutting interest rates.
Traders are split between a 25-50 basis point cut in September, with any signs of slowing inflation likely to give greater weight to a larger cut.
But the uncertainty ahead of the reading kept Wall Street trading sideways, with investors particularly cautious after last week’s surge in volatility.
The Dubai Financial Market General Index ended Monday’s trading stable at 5,344.39 points, while the index rose 0.2% to 16,782.57 points, and fell 0.4% to 39,357.01 points.
In addition to the CPI reading, data is also due later this week that should provide further clues about the economy. Any signs of slowing activity, while strengthening the case for lower interest rates, are also likely to exacerbate concerns about slowing economic growth.
Retailers, chipmakers earnings expected this week
While the second-quarter earnings season is mostly over, profits at major retailers have declined. Home Depot Store Inc (NYSE:) and Walmart Inc (NYSE:) are scheduled to issue their securities this week.
The data is expected to provide further indications about the strength of consumer spending, which in turn is linked to inflation and economic expectations.
Strong consumer spending has helped support inflation in the United States this year, despite pressure from higher interest rates.
Chipmakers are also set to report more earnings this week, with Applied Materials Inc (NASDAQ:) set to report results on Thursday.