US stock futures just higher; key inflation data, retail earnings due

Investing.com– U.S. stock index futures edged higher Monday, trading in tight ranges as caution kicked in before key inflation data, due later this week, which is likely to factor into the outlook for interest rates. 

At 06:20 ET (10:20 GMT),  rose 34 points, or 0.1%,  climbed 6 points, or 0.1%, and gained 35 points, or 0.2%.

The main Wall Street indexes are seen starting the new week on a positive note, continuing the recent move higher with the benchmark  posted its eighth straight winning session on Friday, as well as its best week of the year.

These averages were sitting on three straight weeks of gains, buoyed by some strong earnings, as well as the prospect of eventual interest rate cuts this year. 

Over 90% of  companies have reported results as of Friday, with nearly 80% of firms beating forecasts, according to FactSet data.

Inflation data to dominate market focus 

Gains are likely to be limited for at least the next few sessions, in anticipation of key and inflation readings, due on Tuesday and Wednesday, respectively.

Investors will be watching for any signs of cooling inflation, after price pressures unexpectedly grew for the first three months of 2024, dashing hopes of early interest rate cuts. 

A continuation of this trend is likely to further delay any potential plans for rate cuts. Even if inflation data this week shows some cooling, the reading is still expected to remain well above the Federal Reserve’s 2% annual target. 

Before the inflation data, more signals from Fed officials are also on tap. is set to speak later on Monday, after several of her peers warned last week that the Fed still needed more confidence that inflation was easing to begin cutting interest rates. 

Major retailers to report results 

The quarterly earnings season is gradually drawing to a close, but this week will see results from major retailers Walmart (NYSE:) and Home Depot (NYSE:), which will provide fresh insights into the health of the U.S. consumer. 

Elsewhere, Arm Holdings (NASDAQ:) has announced plans to develop artificial-intelligence chips, according to a report in Nikkei Asia, with the U.K.-based chip designer announcing plans to set up an AI chip division.

Arm aims to build a prototype by spring 2025, the report said, with mass production, likely to be handled by contract manufacturers, expected to start in the autumn of 2025.

Also, Reuters reported that President Joe Biden is set to announce new China tariffs as soon as Tuesday, targeting sectors including electric vehicles, medical supplies and solar equipment.

Crude gains after Chinese inflation data 

Crude prices edged higher Friday, as traders digested mixed inflation data from China, the world’s biggest crude importer, while sentiment was also fragile ahead of key U.S. inflation readings this week. 

By 06:20 ET, the U.S. crude futures traded 0.3% higher at $78.46 a barrel, while the Brent contract climbed 0.2% to $82.93 per barrel.

China’s contracted in April, suggesting that business demand remained sluggish, but rose, signaling a rebound in consumer demand.

Crude prices were nursing mild losses from the prior week after weak readings on U.S. consumer confidence and high inflation projections spurred concerns over an economic cooldown in the world’s biggest fuel consumer.

Trading ranges are likely to be tight ahead of the key U.S. inflation data later this week, as hotter than expected numbers would dampen hopes of interest rate cuts, which could slow growth and crimp energy use in the world’s biggest economy. 

(Ambar Warrick contributed to this article.)