U.S. stock index futures edged higher in overnight trading on Monday, after key averages shifted between gains and losses in regular trading as the market awaited key inflation data on Thursday. this weekend.
Futures contracts tied to the Dow Jones Industrial Average added 0.1%. S&P 500 futures gained 0.16%, while Nasdaq 100 futures gained 0.24%.
Transparent regular transactions The S&P 500 fell 0.37%, while the Nasdaq Composite fell 0.58%. Both traded higher earlier in the day, before reversing in the last hour of trading. However, each index managed to close above the worst of the session.
The Dow Jones Industrial Average ended Monday’s session just 1 point higher. At one point, the benchmark of 30 stocks increased by 235 points. At the intraday low, the Dow fell about 95 points.
“US stocks will struggle to find direction until the latest inflation tilts market expectations of the Fed tightening what is still seen as a stock market crash,” said Oanda’s Edward Moya. overpriced.
On Thursday, the Labor Department will release January consumer price index data. The reading followed a stronger-than-expected January jobs report, which has led to speculation that the Federal Reserve may be more aggressive when it comes to rate hikes. Expected inflation data showed prices rose 0.4% in January, representing a 7.2% increase from a year ago.
Bank of America said on Monday that the Federal Reserve could do seven raise interest rates by a quarter percent this year.
“The turbulent market action continues as the combination of Fed policy uncertainty and economic transition remains in focus,” Canaccord Genuity said Monday in a note. for customers.
“Unfortunately, this is the environment we will be in for a while as the mid-cycle economic and monetary transition takes place.”
Media services was the S&P 500’s worst performing sector on Monday, falling 2.2% amid a 5% drop in shares of Facebook’s parent Meta. Shares of the social media giant have fallen 28% this month following the company’s disappointing earnings report.
Alphabet, Google’s parent company, fell 2.9%, while Twitter, Match Group and Netflix all fell about 2%.
“Tech stocks are no longer a one-way trade as investors cut their losses and now focus on valuation, competition and the long-term outlook,” added Oanda’s Moya.
Earnings season continues on Tuesday with Pfizer, Harley-Davidson, Lyft, Chipotle and Yum China among the names set to release quarterly results.
As of Monday afternoon, 281 S&P 500 components reported, with 78% beating earnings estimates and 77% topping revenue expectations, according to FactSet.
Peloton will also report earnings on Tuesday after the market close, during a tumultuous time for the company. Stock soar 20.9% on Monday following reports that the company could be a takeover target.
