Stocks Today: Futures fall ahead of key January inflation report

Trader on the New York Stock Exchange.Brendan McDermid/Reuters

  • Investors traded cautiously on Tuesday ahead of January inflation data.

  • Wall Street expects consumer prices to fall below 3% for the first time in more than two years.

  • Stock index futures were slightly lower, with the 10-year Treasury yield and the U.S. dollar index barely touching budget.

Market sentiment was cautious on Tuesday as investors anxiously awaited the release of U.S. inflation data for January.

U.S. stock futures were in the red shortly after 5 a.m. ET. Dow Jones Industrial Average Futures down 0.2%, S&P 500 Index Futures fell 0.3%, and Nasdaq 100 Futures down 0.4%.

this 10-Year Treasury Bond Yield Barely moved by 4.18%, and dollar index Up about 0.1%.

wall street expect The consumer price index (CPI) will be 2.9%, the first time since March 2021 that it has been below 3%.

Annualized price growth moving toward the Fed’s 2% target could pave the way for the Fed to cut interest rates within months, easing pressure on the economy and reducing the risk of recession.

The Federal Reserve raised its benchmark interest rate from near zero to over 5% in less than 18 months to curb inflation, which surged to 9.1% in the summer of 2022, a 40-year high.

“U.S. headline inflation is expected to fall below 3% in January,” Swissquote senior analyst Ipek Ozkardeskaya said in a morning note.

She continued: “A set of weaker-than-expected data could boost expectations for a May rate cut, keeping the U.S. dollar index below the 100-day moving average and supporting stocks. However, an unexpected upside could further hurt the U.S. dollar index.” Lower expectations and shift focus to June. “

Several high-profile companies are set to release fourth-quarter earnings reports today, including Airbnb, Shopify, and Coca-Cola.

Investors will be looking forward to more data releases this week. Initial jobless claims, retail sales and the Empire State manufacturing survey are all scheduled to be released on Thursday.

Read the original article business insider

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