Investing.com — U.S. stock index futures fell slightly in overnight trading on Sunday after concerns over higher interest rates led to volatile trading on Wall Street, with focus this week shifting to headline personal consumption expenditures inflation data for further signs of a… interest rates.
Trading volumes were weak ahead of the Memorial Day holiday on Monday.
The index fell 0.1% to 5,316.25 points, while it fell 0.2% to 18,837.50 points by 19:53 ET (23:3 GMT). It fell 0.1% to 39,122.0 points.
PCE inflation was awaiting further price signals
The data – the Fed's preferred measure of inflation – is scheduled for release on Friday.
While the reading is expected to show some slowdown in personal spending and consumption, it also comes after a series of warnings from the Federal Reserve that steady inflation will delay any potential interest rate cuts this year.
These warnings have led investors to steadily price in their expectations for a rate cut in September, which was initially pegged as the point at which the Fed would begin to ease policy. The tool now shows that investors are pricing in a greater chance of the Fed keeping interest rates steady in September.
Wall Street is seeing increased volatility near record levels
Wall Street indexes posted some record highs last week supported by positive earnings, particularly from NVIDIA Corporation (NASDAQ:).
This also helped the tech-heavy company post a record close on Friday. It also saw some gains last week.
But most other stock sectors declined, with mixed weekly performance.
While the S&P finished last week largely flat, the Dow Jones, seen as more economically sensitive, fell more than 2%.
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.