Stock Futures Steady as Investors Await Economic Data and Tech Earnings
Traders on the floor of the New York Stock Exchange (NYSE) in New York City were met with little change in stock futures on Sunday night as investors eagerly awaited a series of economic data and earnings reports from major tech companies in the coming week.
Futures tied to the Dow Jones Industrial Average saw a slight increase of 9 points, or 0.01%. Meanwhile, S&P 500 futures and Nasdaq 100 futures edged higher by 0.02% and 0.07%, respectively.
Although the stock market had experienced a downward trend for the week, Friday saw a positive turn as the Dow gained 75.86 points, or 0.22%, closing at 34,576.59. The S&P 500 also experienced a slight increase of 0.14%, snapping a three-day losing streak and finishing at 4,457.49. The Nasdaq Composite eked out a 0.09% gain, settling at 13,761.53. However, all three indexes reported a losing weekâthe first negative week in three for the S&P and Nasdaq.
Investors are particularly eager to receive key inflation data in the week ahead, following a series of stronger-than-expected economic data points. This has led to concerns that the Federal Reserve may raise rates more aggressively than previously anticipated. Traders are currently pricing in a roughly 4 in 10 chance of an interest rate increase in November, after an anticipated pause in September, according to CME Group’s Fed Watch tool.
Yung-Yu Ma, Chief Investment Strategist at BMO Wealth Management, stated, “Overall, the market will be looking for direction amid recent choppiness and concern that the economy is set to slow down in the coming quarters,” speaking to CNBC.
Further economic data to be released includes the consumer price index on Wednesday and the producer price index on Thursday. Expectations indicate a rise in both indices due to increasing energy costs. Ma highlighted the significance of oil prices, stating, “Both CPI and PPI inflation reports will highlight the importance of oil price, which has pushed toward the upper end of its one-year trading range. A break above $90/barrel for WTI would start to cause concerns for future price pressures in the economy.”
Additionally, retail sales data is expected on Thursday, while the University of Michigan’s Consumer Sentiment Survey will be released on Friday, providing insight into the potential resilience of spending for the remainder of the year.
Meanwhile, investors are eagerly anticipating financial updates from two major tech giants: Oracle on Monday and Adobe on Thursday.
On Tuesday, Apple will hold its highly anticipated product event, dubbed “Wonderlust,” during which the unveiling of the iPhone 15 is expected. However, Apple experienced a dip below its 50-day moving average last week following reports of China’s plans to expand the ban on the use of iPhones in government agencies and state-owned companies. This news raised concerns among investors, as Apple is the largest stock in the S&P 500.
As the week unfolds, investors will closely monitor the economic data and tech earnings, seeking guidance amidst recent market volatility and concerns about a potential economic slowdown in the coming quarters.