Stocks Set to Open Lower as Focus Shifts to Inflation and Earnings
As the new week kicks off, stocks are preparing to open lower amidst concerns over inflation, interest rates, and the start of the second-quarter earnings season. Futures on the S&P 500 and Dow Jones Industrial Average fell around 0.2%, while futures on the Nasdaq 100 dropped over 0.3%.
This decline comes after all three major averages closed lower on Friday. Investors are closely watching for updates on inflation and interest rates, with US consumer and producer inflation reports scheduled to be released later this week. Market watchers expect these reports to show a decrease in price pressures, which could potentially influence the Federal Reserve’s decision on rate rises later this year. However, experts believe a rate hike in July is still likely, despite some cooling in the June jobs report.
Meanwhile, in China, fresh price data has raised concerns about deflation in the world’s second-largest economy. Despite Beijing’s stimulus moves, it seems that efforts to combat deflation are falling short.
Looking ahead, investors are eagerly anticipating Q2 reports from big banks like JPMorgan and Citi, which are set to be released on Friday. These financial results will undoubtedly have a significant impact on the market.
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Overall, this week promises to be an eventful one as markets navigate through inflation concerns, interest rate expectations, and the release of major earnings reports.