Investors are keeping a close eye on U.S. futures as they await key inflation data this week to gauge the Federal Reserve’s next move. Futures on the Nasdaq 100, S&P 500, and Dow Jones Industrial Average are showing slight declines, indicating a cautious approach from investors.
The stock market started the week on a subdued note, with major indices like the Dow Jones, Nasdaq 100, and S&P 500 all dipping slightly. This comes as U.S. government bond yields hit a four-month high, adding to concerns about inflation. The upcoming Consumer Price Index (CPI) report on Wednesday is expected to provide more clarity on the inflation scenario.
Comerica Bank and Apollo Global Management are both anticipating a hot CPI and Producer Price Index (PPI) report, driven by rising gasoline and food prices. A hotter-than-expected inflation report could lead to the Fed maintaining higher interest rates for a longer period, potentially impacting market sentiment.
In other news, Tesla saw a 5% gain on plans to unveil its new robotaxi in August, while crypto stocks like Coinbase and MicroStrategy also rose on the back of Bitcoin prices surpassing $72,000. The U.S. 10-year treasury yield was down, while WTI crude oil futures trended higher amid rising geopolitical tensions in the Middle East.
Over in Europe, indices opened lower as investors awaited key U.S. inflation data and the European Central Bank meeting scheduled for this week.
Asia-Pacific Markets Ended Higher on Tuesday
On the other side of the globe, Asia-Pacific indices closed in the green as traders welcomed the Consumer Confidence Index (CCI) report from Japan, which rose to its highest level since May 2019. Hong Kong’s Hang Seng index gained 0.57%, while Japan’s Nikkei and Topix indices rose 1.08% and 0.97%, respectively. China’s Shanghai Composite and Shenzhen Component indices also ended higher.
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Disclosure: This article is for informational purposes only and should not be considered as financial advice.
