Investing.com — U.S. stock index futures rose slightly in overnight trading Monday, with the focus largely on more signals on interest rates from key inflation data due later in the week.
Memorial Day weekend kept trading volumes minimal. But trading volumes are expected to rise this week with a barrage of key economic readings, including revised first-quarter GDP data.
It rose 0.1% to 5,327.75 points, while it rose 0.2% to 18,918.0 points by 19:06 ET (23:06 GMT). It rose 0.1% to 39,192.0 points.
PCE inflation test scheduled this week
The data, the Fed's preferred measure of inflation, is scheduled for release on Friday.
The reading is likely to take into account the central bank's outlook on interest rates, and will be closely watched after a series of Fed officials warned that steady inflation would delay any plans to ease monetary policy.
This has led to traders starting to price in expectations of interest rate cuts in September. Traders are showing that there is a 50.7% probability that the central bank will keep interest rates steady, along with a 43.6% probability of a 25 basis point rate cut.
Friday's PCE reading is expected to show some slowdown in inflation. But inflation is also expected to remain well above the Fed's annual target range of 2%.
Wall Street is on the verge of record highs, volatility is increasing
Gains in technology stocks, led by NVIDIA Corporation (NASDAQ:), helped them close at a record high last week. The index also recorded some gains during the week.
While the US dollar and US dollar also tested record highs, they were held back by losses in most other sectors, amid concerns about higher interest rates for a longer period.
High interest rates weaken the attractiveness of risk-driven assets such as stocks. They also limit the amount of market liquidity that can be invested in stocks.
The Standard & Poor's 500 index closed 0.7 percent higher at 5,304.72 points on Friday, while the Nasdaq index closed 1.1 percent higher at a record high of 16,920.79 points. The Dow Jones index closed stable at 39,069.59 points.