U.S. stock futures retreat as inflation data and earnings season loom

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Stock futures were lower as the poor sentiment of recent sessions remained.

U.S. stock futures were again under pressure Monday ahead of crucial inflation data and the start of second-quarter earnings season.

How are stock-index futures trading On Friday, the Dow Jones Industrial Average DJIA fell 187 points, or 0.55%, to 33735, the S&P 500 SPX declined 13 points, or 0.29%, to 4399, and the Nasdaq Composite dropped 18 points, or 0.13%, to 13661.The S&P 500 shed 1.2% last week as relatively robust economic data pushed bond yields TMUBMUSD10Y toward cycle highs on expectations the Federal Reserve would need to keep raising borrowing costs as it continued to suppress inflation.

“Due Wednesday, U.S. inflation is expected to have fallen from 4% to around 3% in June, with a possibly uptick in the monthly data. But core inflation could prove stickier at around the 5% mark,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. Such a negative narrative tends to be counteracted by accompanying hopes that the authorities in Beijing will unleash more stimulus, and so the reaction is nuanced. Hong Kong’s Hang Seng HSI rose 0.6% but industrial commodities that are often tightly correlated to perceptions of Chinese demand, such as oil CL00 and copper HG00 , are lower on the day.

 

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