Investing.com – U.S. stock futures edged higher on Monday, trading in narrow ranges as caution set in ahead of key inflation data due later this week, which is likely to weigh on the interest rate outlook.
At 06:20 ET (1020 GMT), the gain was 34 points, or 0.1%, up 6 points, or 0.1%, and up 35 points, or 0.2%.
Wall Street’s major indexes are expected to start the new week on a positive note, continuing their recent upward move, with the index posting its eighth straight winning session on Friday and its best week of the year.
Those averages have risen for three weeks in a row, helped by some strong earnings as well as the prospect of a possible cut in interest rates this year.
More than 90% of companies had reported results as of Friday, with nearly 80% of companies beating forecasts, according to FactSet.
Inflation data will dominate market attention
Gains are likely to be capped for at least the next few sessions pending key inflation indicators and inflation figures due on Tuesday and Wednesday respectively.
Investors will be watching for any signs of a cooling in inflation after price pressures unexpectedly rose in the first three months of 2024, dashing hopes of a quick interest rate cut.
A continuation of this trend is likely to further delay any potential rate cut plans. Even if inflation data shows some decline this week, the rate is expected to remain well above the Federal Reserve’s annual target of 2%.
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Additional signals from Fed officials will also be available before the release of inflation data. is set to speak later Monday after several of her colleagues warned last week that the Fed still needs more confidence that inflation is slowing before it can begin cutting interest rates.
The largest retailers will report their results
The quarterly earnings season is gradually coming to an end, but this week the results of the largest retailers Walmart (NYSE:) and Home Depot (NYSE:), which will provide new information about the health of US consumers.
In the other place, Hand Holdings (NASDAQ:) announced plans to develop artificial intelligence chips, according to a report from Nikkei Asia, and the British chip designer announced plans to create an artificial intelligence chip division.
The report states that Arm aims to build a prototype by spring 2025, with mass production likely to be carried out by contract manufacturers, expected to begin in fall 2025.
Separately, Reuters reported that President Joe Biden is set to announce new tariffs on China as early as Tuesday, targeting sectors such as electric vehicles, medical supplies and solar equipment.
Oil rose after China inflation data
Crude oil prices rose on Friday as traders digested mixed inflation data from China, the world’s biggest oil importer, while sentiment was also fragile ahead of key US inflation figures this week.
By 6:20 a.m. ET, U.S. crude futures were trading 0.3% higher at $78.46 a barrel, while the Brent crude contract was up 0.2% at $82.93 a barrel.
China contracted in April, indicating business demand remained sluggish but rose, signaling a recovery in consumer demand.
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Oil prices suffered slight losses from the previous week after weak US consumer confidence readings and high inflation forecasts raised fears of an economic slowdown in the world’s largest fuel consumer.
Trading ranges are likely to be tight ahead of key U.S. inflation data later this week as the higher-than-expected figures dampen hopes for interest rate cuts that could slow economic growth and limit energy use in the world’s largest economy.
(Ambar Warrick contributed to this article.)