Stock futures hovered near the flatline on Tuesday as Wall Street awaited the release of critical inflation data.
Futures for the S&P 500 remained unchanged, while Nasdaq 100 futures dipped by 0.07%. Dow Jones Industrial Average futures edged down by 6 points, or 0.02%.
In regular trading on Monday, the Dow Jones Industrial Average fell by 0.2%, marking its first losing session in nine days and ending its longest winning streak since December. The S&P 500 slipped by 0.02%, while the Nasdaq Composite outperformed, gaining approximately 0.3%.
A recent report from the New York Federal Reserve indicated that consumer expectations for both short-term and long-term inflation increased in April. This data added pressure on the major averages and weighed on stocks.
Attention now turns to Tuesday morning, when the first of two crucial inflation reports will be released. The Producer Price Index (PPI) for April is scheduled for 8:30 a.m. Eastern Time, with economists surveyed by Dow Jones expecting a 0.3% increase from the previous month. On Wednesday, the closely watched Consumer Price Index (CPI) will be published, with projections indicating a 0.4% rise for April month-over-month, or a 3.4% increase from the same period last year.
Despite Monday’s subdued market performance, the major indexes remain close to their recent highs. Investor sentiment has been buoyed by Federal Reserve Chair Jerome Powell’s remarks earlier this month, suggesting that the central bank is “unlikely” to raise interest rates, even amid persistently high inflation readings.
“It’s not unusual for Wall Street and Main Street to see the economy differently — the different perspective stems from different points of focus. Stock market movements are based on expectations of future economic performance, not necessarily current conditions,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management.
“However, these differing views highlight a potential risk for investors who are betting that rate cuts will come before the economy falters,” he added.
