Last Updated: 4:07 PM EST
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Stock indices finished today’s trading session mixed. The Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) gained 0.86% and 0.3%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.3%. Earlier today, we got some information about consumer inflation expectations.
Indeed, according to the Federal Reserve Bank of New York’s latest survey, U.S. consumers expect inflation to remain elevated for longer, with the three-year outlook rising from 2.6% to 3.0%. However, they anticipate a slight dip to 2.7% in five years. Short-term inflation uncertainty increased, but consumers were more confident about the long-term outlook.
Household income expectations fell to 2.8%, the lowest since May 2021, but still above pre-pandemic levels. Meanwhile, expected household spending growth ticked up to 4.8%. Job security sentiment improved slightly, with fewer people fearing job loss, but confidence in finding a new job dropped to 50.2%, the lowest since April 2021.
The survey’s findings contrast with the University of Michigan’s report, which showed rising inflation expectations for both one-year and five-year horizons, increasing to 3.3%. Still, both surveys highlight mixed sentiments when it comes to household finances and labor market conditions.
First Published: 3:53 AM EST
U.S. stock futures traded modestly lower on Monday morning as investors braced for a busy week filled with key economic data and major corporate earnings releases. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.82%, 0.26%, and 0.57%, respectively, at 3:37 a.m. EST, January 13.
In the last trading session, the S&P 500 closed down by 1.5%. Also, the Dow Jones and the Nasdaq Composite both fell by 1.6%. This decline came after stronger-than-expected labor market data for December, which raised investor concerns that the Federal Reserve will not reduce interest rates in the upcoming meeting.
Investors are now closely watching key economic indicators, including the December Consumer and Producer Price Index (CPI) reports, the key inflation indicators. These data points will be crucial in determining the Fed’s future actions regarding interest rates.
In addition, investors will be awaiting speeches from Federal Reserve officials for further guidance on the central bank’s monetary policy outlook.
This week will also see the release of key earnings reports from major banks, including Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), Wells Fargo (WFC), and Bank of America (BAC). These reports will provide insights into the health of the financial sector.
Among other major companies, UnitedHealth (UNH), KB Home (KBH), Applied Digital(APLD), Taiwan Semi (TSM), and Schlumberger (SLB) are scheduled to report this week.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.782%. Simultaneously, WTI crude oil futures are trending higher, hovering near $77.85 per barrel as of the last check.
Elsewhere, European indices opened lower on Monday morning as investors kept a close eye on the Eurozone and U.K. government bond yields after yields rose to fresh highs last week.
Asia-Pacific Markets Ended Lower on Monday
Most of the Asia-Pacific indices were in the red today as the latest labor data from the U.S. hurt expectations of further interest rate cuts. Also, investors assessed the latest trade data from China, which showed that imports unexpectedly rose 1% in December 2024.
At the same time, Hong Kong’s Hang Seng Index was down 1%. Further, China’s Shanghai Composite index was down 0.25%, while the Shenzhen Component index ended marginally higher.
Investors should note that markets in Japan were closed for a holiday today.
Interested in more economic insights? Tune in to our LIVE webinar.
