U.S. equity futures edged higher on Monday as investors turned their focus to critical inflation reports expected this week. This cautious optimism follows last week’s volatility, where markets nearly recovered from sharp sell-offs driven by concerns over a potential economic slowdown.
At 12:22 GMT, Dow Futures are trading 39708.00, up 68.00 or +0.17%. S&P 500 Index futures are at 5384.25, up 14.00 or +0.26% and Nasdaq 100 Index Futures are trading 18671.75, up 55.75 or +0.30%.
Several stocks made significant moves in premarket trading:
Investors are bracing for key economic data this week, with the producer price index (PPI) on Tuesday and the consumer price index (CPI) on Wednesday being closely watched. These reports are expected to provide critical insights into inflation trends and will likely influence the Federal Reserve’s next steps. July retail sales data, due on Thursday, will further clarify consumer spending patterns, an important indicator of economic health.
Callie Cox, chief market strategist at Ritholtz Wealth Management, highlighted the market’s nervousness, noting that, “Investors have jumped to conclusions about the economy, and now they’re going to analyze a fresh batch of data to judge how warranted this sell-off actually is.” She also pointed out that strong inflation data could ease fears and support further market rallies, particularly in sectors sensitive to interest rates.
With the upcoming inflation data and earnings reports from key companies like Home Depot and Cisco, market volatility could persist. Investors will need to weigh the new economic data against the backdrop of recent market swings to gauge the likelihood of continued recovery or renewed pressure on stocks.
E-mini S&P 500 Index futures are edging higher shortly before Monday’s opening. The key level to watch is the pivot at 5360.50.
A sustained move over 5360.50 will indicate the presence of buyers. If this creates enough upside momentum the look for a near-term surge into the 50-day moving average at 5503.75.
The inability to hold 5360.50 will signal the presence of sellers. This could trigger a near-term break into 5239.75.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.