The U.S. futures edged lower on Monday morning as investors braced for key inflation data and earnings reports from major banks and consumer companies. The futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.13%, 0.15%, and 0.17%, respectively, at 3:31 a.m. EST, July 8.
The tech-heavy Nasdaq 100 and the S&P 500 index gained about 21% and 17%, respectively, year-to-date, driven by investors’ optimism over artificial intelligence (AI) technology. However, the economic data releases and the upcoming corporate earnings could significantly influence the market’s direction.
Turning to this week’s economic reports, June’s CPI report is due on Thursday, July 11. This report is a crucial measure of inflation and directly impacts the Federal Reserve’s policy rate decisions. Following the release of the CPI report, June’s Producer Price Index (PPI) will be released on Friday, July 12. The PPI is considered a reliable early indicator of inflationary trends. Also, the June Michigan Consumer Sentiment Index and the University of Michigan 5-year Consumer Inflation Expectations will be released on Friday.
On the earnings front, Manchester United (MANU), Delta Air Lines (DAL), PepsiCo (PEP), Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC), among others, will announce results this week.
Meanwhile, the U.S. 10-year treasury yield was up at writing, floating near 4.29%. At the same time, WTI crude oil futures trended lower, hovering near $82.58 per barrel as of the last check.
Elsewhere, European indices are set to open lower as investors react to a left-wing coalition’s surprising win in France, possibly leading to a hung parliament.
Asia-Pacific Markets Were Lower on Monday
Asia-Pacific indices were lower on Monday as Japan’s real wages fell for the 26th month in a row. Japan’s Nikkei and Topix indices dropped 0.32% and 0.57%, respectively.
Elsewhere, China’s Shanghai Composite and Shenzhen Component indices fell by 0.93% and 1.54%, respectively. At the same time, Hong Kong’s Hang Seng index was down 1.85%.
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