Investing.com – U.S. stock index futures rose modestly in after-hours trading on Monday, with focus on additional interest rate signals from key inflation data due later this week.
Due to the Memorial Day holiday, trading volumes remained low. But sales should pick up this week thanks to a host of key economic indicators, including revised first-quarter gross domestic product data.
by 19:06 ET (2306 GMT) was up 0.1% to 5,327.75 points and up 0.2% to 18,918.0 points. increased by 0.1% to 39,192.0 points.
PCE inflation test coming this week
The data, which is the Federal Reserve’s preferred measure of inflation, will be released this Friday.
The data will likely weigh on the central bank’s interest rate outlook and will be closely watched after several Fed officials warned that persistent inflation would delay any plans to ease monetary policy.
This has led traders to begin assessing expectations for a rate cut in September. It shows traders rate a 50.7% chance of the central bank keeping rates steady, with a 43.6% chance of a 25 basis point rate cut.
Friday’s PCE data is expected to show some decline in inflation. But inflation will also remain well above the Fed’s 2% annual target range.
Wall Street Expects Record Highs as Volatility Rise
Rising tech stocks, led by market darling NVIDIA Corporation (NASDAQ:), helped end last week at a record high. The index also showed some growth over the week.
While indices and banks also tested record levels, they were capped by losses in most other sectors amid concerns over high and long-term interest rates.
High rates reduce the attractiveness of risky assets such as stocks. They also limit the amount of liquidity in the market that can be invested in stocks.
On Friday, the S&P 500 added 0.7% to 5,304.72 and the Nasdaq rose 1.1% to a record high of 16,920.79. The Dow Jones Industrial Average ended trading at 39,069.59.