The Dow futures mark increase as Wall Street anticipates important inflation data later this week, officials say.
Major market averages move higher on Monday as investors brace for the last full week of economic numbers before the next Fed decision.
Futures for the Dow Jones Industrial Average increased by 71 points, or 0.2%. Nasdaq 100 futures increased by 0.5%, while S&P 500 futures increased by 0.4%.
The developments followed a positive week for American equities in which all three major averages ended a losing streak of three weeks. The S&P 500 rose 3.7% while the Dow gained 2.6% throughout the course of the week. The Nasdaq Composite increased by 4.1%.
Ahead of the Federal Reserve’s September meeting, where the institution is anticipated to announce its third consecutive 0.75 percentage point rate hike in a bid to combat excessive inflation, stocks have been turbulent.
Despite the fact that Fed Chair Jerome Powell emphasized last week that he is “fully committed” to bringing down inflation, Wall Street investors were searching for indications that the magnitude of upcoming rate hikes may be less as inflation slows down.
The U.S. dollar’s recent surge has been tempered by the European Central Bank’s own significant rate hike, which was announced last week.
Citi strategist Ebrahim Rahbari wrote in a note to clients, “We envision the relief in equities prices and the recent wide Dollar fall continue into the week, as markets eye short-term peak central bank hawkishness and positioning is reasonably defensive.”
Investors are anticipating the release of the August consumer price index report on Tuesday this week. One of the last pieces of inflation statistics the Fed will examine before its September meeting is the report. Reports on industrial production and retail sales will be made public on Thursday.
