Investing.com – U.S. stock index futures were in a narrow range in overnight trade on Sunday as Wall Street saw some stability after last week’s wild swings, with focus shifting to key inflation data due this week.
Wall Street indexes initially posted sharp losses last week, but ended the week mostly flat on a mix of cheap buying and some recession fears. Continued bets on interest rate cuts also helped stock markets.
The S&P 500 index fell 0.1% to 5,365.75 points, while it was down 0.1% at 18,602.25 points by 19:21 ET (23:21 GMT). It was down 0.1% at 39,603.0 points.
CPI data awaits further signals
This week’s focus is entirely on inflation data, due out on Wednesday, for further clues about the economy and slowing inflation.
The reading is expected to slow slightly in July compared to the previous month – a trend that is likely to boost optimism about lower interest rates.
Investors are divided over whether to cut interest rates by 25 basis points or 50 basis points in September, according to . But the Fed is widely expected to start cutting rates at that time, amid growing signs of a slowing U.S. economy.
The Federal Reserve recently indicated that any further encouraging economic data would pave the way for a September rate cut, and that it does not need to see inflation reach its 2% annual target to start cutting rates.
Wall Street Recovers Last Week’s Losses
Wall Street indexes closed slightly higher on Friday, holding on to some of the recovery from last week’s lows.
US stocks posted sharp losses last week, amid a sharp decline in technology stocks and fears of a US recession, with the Nasdaq entering correction territory from recent peaks.
But buying of heavy technology stocks at cheap prices, along with the idea that fears of a U.S. recession may be overblown, helped Wall Street recoup most of its losses, with U.S. stock indexes ending the week flat.
The Saudi market’s main index rose 0.5% on Friday to 5,344.16 points, while it rose 0.5% to 16,745.30 points, and rose 0.1% to 39,497.54 points.
Aside from Wednesday’s inflation data, some earnings are also expected this week, although the second-quarter earnings season is now largely over. Home Depot Store Cisco Systems Inc (NYSE:) and Cisco Systems Inc (NASDAQ:) are scheduled to report their financials in the coming days.
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