Investing.com — U.S. stock index futures rose on Monday, trading in tight ranges as caution set in ahead of key inflation data, due later this week, which will likely factor into interest rate expectations.
At 06:20 EST (10:20 GMT), it rose 34 points, or 0.1%, rose 6 points, or 0.1%, and gained 35 points, or 0.2%.
Wall Street's major indices are expected to start the new week on a positive note, continuing a recent move higher as the index recorded its eighth straight winning session on Friday, in addition to its best week of the year.
These averages marked three straight weeks of gains, supported by some strong earnings, as well as the possibility of an eventual interest rate cut this year.
More than 90% of companies reported results as of Friday, with nearly 80% beating expectations, according to FactSet data.
Inflation data to control market concentration
Gains are likely to be limited for at least the next few sessions, in anticipation of headline and inflation readings scheduled for Tuesday and Wednesday respectively.
Investors will be watching for any signs of inflation slowing, after price pressures unexpectedly increased during the first three months of 2024, dashing hopes for early interest rate cuts.
The continuation of this trend is likely to delay any potential plans to cut interest rates. Even if this week's inflation data shows some slowdown, the reading is expected to remain well above the Federal Reserve's annual target of 2%.
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Ahead of the inflation data, there are also more signals from Federal Reserve officials. She is scheduled to speak later on Monday, after several of her peers warned last week that the Fed still needs more confidence that inflation is falling to start cutting interest rates.
Major retailers to report results
Quarterly earnings season is gradually coming to an end, but this week will see results from major retailers Walmart (NYSE:) and… Home Depot (NYSE:), which will provide new insights into the health of the American consumer.
in another place, arm Holdings (NASDAQ:) has announced plans to develop artificial intelligence chips, according to a report in Nikkei Asia, as the UK-based chip designer announced plans to create an artificial intelligence chip division.
Arm aims to build a prototype by spring 2025, and mass production, which will likely be handled by contract manufacturers, is expected to begin in fall 2025, the report said.
Reuters also reported that President Joe Biden is set to announce new China tariffs on Tuesday, targeting sectors including electric vehicles, medical supplies and solar equipment.
Crude gains after Chinese inflation data
Crude oil prices rose on Friday, as traders digested mixed inflation data from China, the world's largest importer of crude oil, while sentiment was also fragile ahead of key US inflation readings this week.
By 06:20 EST, US crude futures were trading 0.3% higher at $78.46 per barrel, while the Brent contract was up 0.2% at $82.93 per barrel.
China contracted in April, indicating that trade demand remained sluggish, but rose, indicating a recovery in consumer demand.
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Crude oil prices suffered slight losses from the previous week after weak US consumer confidence readings and high inflation expectations raised concerns about an economic slowdown in the world's largest fuel consumer.
Trading ranges are likely to be tight ahead of key US inflation data later this week, as hotter-than-expected figures will dampen hopes for interest rate cuts, which could slow growth and hamper energy use in the world's largest economy. the world.
(Ambar and Eric contributed to writing this article.)