U.S. stock futures climb slightly as investors focus on PCE data
As of 19:06 Eastern Time (23:06 Greenwich Mean Time), S&P 500 index futures rose 0.1%, Nasdaq 100 index futures rose 0.2%, and Dow Jones futures rose 0.1%.
On Monday evening, US stock index futures rose slightly, with investors focused on key inflation data to be released this week for new interest rate guidance.
Due to the impact of the Memorial Day holiday, the trading volume of stock index futures is relatively low. However, a series of important economic reports, including the revised first quarter GDP data, will be released this week, and trading volume is expected to increase.
As of 19:06 Eastern Time (23:06 Greenwich Mean Time), S&P 500 index futures rose 0.1% to 5,327.75; The Nasdaq 100 index futures rose 0.2% to 18,918; Dow Jones futures rose 0.1% to 39,192.
The core personal consumption expenditure (PCE) price index, the Federal Reserve's favorite inflation indicator, will be released this Friday. This data may affect the interest rate outlook of the Federal Reserve. The data will be closely monitored after several Federal Reserve members have warned that sustained inflation will delay efforts to relax monetary policy.
Traders are starting to lower their expectations for a rate cut in September. According to the CME FedWatch tool, traders expect a 50.7% chance that the Federal Reserve will maintain interest rates unchanged, while a 43.6% chance of a 25 basis point rate cut.
The market expects that Friday's PCE data will show a slowdown in inflation. However, the inflation rate will still be significantly higher than the Federal Reserve's annual target range of 2%.
Wall Street is approaching historic highs, with increased market volatility. The rise of technology stocks, especially the performance of market darling Nvidia, helped the Nasdaq Composite Index reach a historic high last week. The index also saw a slight increase this week.
Although the S&P 500 and Dow Jones Industrial Average hit new highs, concerns about future interest rate hikes led to declines in almost all other sectors, thereby suppressing the gains of these two indices.
High interest rates reduce the attractiveness of risky assets such as stocks, while also limiting the liquidity available for investing in stocks.
Last Friday, the S&P 500 index rose 0.7% to 5,304.72 points; The Nasdaq index rose 1.1%, reaching a historic high of 16,920.79 points; The Dow Jones Industrial Average closed flat at 39,069.59 points.
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