Investing.com -- Wall Street looks set to start the day slightly lower as investors await the release of the latest inflation data, which could guide expectations of interest rate cuts later this year. The new earnings season has nearly arrived, while the U.K. economy returned to growth in May.report is due later in the session, and is expected to show inflation easing and pave the way for rate cuts in September.
As it stands, Fed funds futures are showing a 73% chance that the central bank eases at its September meeting, according to CME FedWatch, and inflation meeting forecasts will likely cement those expectations. This brings the June reading of the consumer price index, due later in the session, firmly into focus, with investors looking for an easing for confirmation.The new U.S. quarterly earnings season starts in earnest on Friday, with results scheduled from a number of the nation’s major banking institutions.
“We expect S&P 500 firms will again clear the bar set by consensus estimates,” analysts at Goldman Sachs said, in a note dated June 28. “However, the magnitude of earnings beats is likely to diminish as consensus forecasts set a higher bar than in previous quarters.” Sterling was trading around its highest levels since early March, boosted by the growth numbers but also by BoE policymakers indicating that inflation remains persistent.