The major U.S. index futures are indicating a mostly unchanged start on Tuesday, with stocks expected to exhibit minimal movement following a moderately higher close in the previous session. Market participants might hesitate to take substantial actions before the upcoming release of important inflation figures in the next few days. Last Friday’s weaker-than-expected jobs data boosted confidence that the Fed will cut interest rates at its meeting next week, the inflation data could impact the extent to which the central bank lowers rates.
Analysts currently anticipate that the annual rate of producer price growth in August will remain steady from July at 3.3 percent. The annual growth rate of consumer prices is projected to rise to 2.9 percent in August, up from 2.7 percent in July. Meanwhile, the annual growth rate of core consumer prices, excluding food and energy, is anticipated to remain steady at 3.1 percent. Data indicates that 92.1 percent chance of a quarter-point rate reduction and a slim 7.9 percent chance of a half-point cut. Stocks experienced a moderate increase during Monday’s trading, recovering some ground after closing last Friday’s session significantly above their lowest points, yet still remaining predominantly lower. The tech-heavy Nasdaq achieved a new record closing high with the recent upward movement.The major averages all concluded the day in positive territory.
The Nasdaq rose by 98.31 points, reflecting a 0.5 percent increase, reaching 21,978.70. The Dow saw an uptick of 114.09 points, a 0.3 percent gain, bringing it to 45,514.95. Meanwhile, the S&P 500 advanced by 13.65 points, which is a 0.2 percent rise, settling at 6,495.15. The strength on Wall Street was partly driven by optimism regarding the outlook for interest rates, following last Friday’s weaker-than-expected U.S. employment data. After the publication of a significant report indicating that employment rose by significantly less than anticipated in August, it is broadly anticipated that the Federal Reserve will reduce rates later this month. Trading activity was relatively quiet, as participants anticipated the upcoming inflation data that may influence the outlook for rates.
Software stocks delivered impressive results, propelling the Dow Jones U.S. Software Index to a 1.2 percent increase. Strength among gold equities was also influenced by an increase in the price of gold, as seen by the NYSE Arca Gold Bugs Index’s 1.2 percent gain. Networking and retail stocks exhibited significant strength, whereas telecom, utilities, and natural gas stocks experienced a decline.