Stock futures edged higher in overnight trading on Monday as investors eagerly anticipate a crucial inflation report that could impact the Federal Reserve’s monetary policy direction.
Futures for the Dow Jones Industrial Average saw a modest increase of 30 points, while S&P 500 futures and Nasdaq 100 futures both saw a slight uptick of 0.2%.
The focus is on the upcoming release of the consumer price index (CPI) for February, scheduled for Tuesday at 8:30 a.m. ET. Economists surveyed by Dow Jones are expecting a monthly increase of 0.4% and a 3.1% rise on the headline figure.
Following the unexpected rise in January’s CPI data, market sentiment was shaken, leading to a more cautious stance on policy easing by Fed officials. Current market expectations suggest that the Fed is unlikely to implement interest rate cuts at its upcoming meetings on March 19-20 or April 30 to May 1.
Chief economist at Comerica Bank, Bill Adams, commented, “The CPI index is expected to show a rise in February due to higher gasoline prices, but core inflation is likely to have slowed as a result of decreases in car prices and moderation in rent increases.”
Source (CNBC)
