US Stock futures edge lower as focus turns to CPI data
As profit-taking crippled the technology sector, U.S. stock index futures sank in evening deals on Sunday, extending losses on Wall Street. Attention will now be focused on important forthcoming inflation data.
The technology sector, particularly NVIDIA Corporation (NASDAQ:NVDA), suffered a dramatic decline in Wall Street indexes from their record highs on Friday due to profit-taking.
A mixed jobs report that revealed nonfarm payrolls expanded more than anticipated in February and came shortly after the Federal Reserve made a number of rather hawkish comments about U.S. interest rates also contributed to market nervousness.
S&P 500 Futures fell 0.2% to 5,183.25 points, while Nasdaq 100 Futures fell 0.4% to 18,228.50 points by 19:04 ET (23:04 GMT). Dow Jones Futures fell 0.1% to 39,161.0 points.
CPI data awaited for more rate cut cues
Key consumer price index (CPI) inflation figures were now expected on Tuesday, which the markets were watching for additional clues about the direction of the US economy and interest rates. Despite the fact that the core figure is still anticipated to remain significantly above the Fed’s annual 2% objective, the reading is anticipated to show some easing of inflation following the two months of excessive CPI readings.
Prior to considering lowering interest rates, Fed Chair Jerome Powell and a number of other central bank officials had said last week that they were still waiting for additional evidence of a slowing economy.
Wall Street was affected by their remarks, as seen by Friday’s losses and the remarks made by Minneapolis Fed President Neel Kashkari, who stated he did not anticipate more than one or two rate cuts in 2024.
On Friday, the NASDAQ Composite dropped 1.2% to 16,085.11 points, while the S&P 500 dropped 0.7% to 5,123.69 points. At 38,722.69 points, the Dow Jones Industrial Average closed 0.2% down.
Is the Wall Street rally running out of steam?
Last week, Wall Street indices had a weekly decline as well, prompting concerns about whether the incredible rise that began in February was now losing momentum.
Over the previous month, the major factors influencing Wall Street were technological advancements amid the excitement surrounding artificial intelligence, particularly as investors flocked to Nvidia Corp and other chipmakers.
However, Nvidia’s Friday losses sparked concerns about how long this rally would last, particularly in light of the ongoing uncertainty around the direction of US interest rates.