Stock futures were flat Monday as investors await key inflation data for further clues on the longevity of this year’s market rally. Earnings from some major financial giants and consumer companies are also on the docket. S&P 500 futures rose marginally, while futures tied to the Dow Jones Industrial Average traded just above the flatline. Nasdaq-100 futures added about 0.01%. The S&P 500 is coming off its fourth positive week in the last five amid ongoing optimism that easing inflation — and any pockets of weakness in the economy later this year — could lead to a Federal Reserve interest rate cut. The June consumer price index, which will be released Thursday, could bolster those hopes if the headline number shows a slight improvement, as currently expected. Producer price index data will be released Friday. Last week, labor data reflected a slightly cooling labor market, spurring expectations of a rate cut. But although the U.S. economy added more jobs in June than anticipated, there was also an unexpected rise in the unemployment rate, to 4.1% from 4%. Traders are currently expecting two interest rate cuts in 2024, with the first in September, according to the CME FedWatch Tool. “This [June jobs report] keeps the upcoming inflation data in the driver’s seat for determining the timing of the first cut…signs of continued moderation of economic growth and the labor market will likely be a positive for equities and high yield bonds in, at least, the short run,” said Greg Wilensky, head of U.S. fixed income at Janus Henderson Investors. A slew of major banks, including Citigroup and JPMorgan Chase, will kick off second-quarter earnings season this week. PepsiCo and Delta Air Lines are also set to post results. Stocks are coming off of a strong week, as the S&P 500 and Nasdaq Composite reached all-time highs on Friday and ended at record closing levels, with the broad-market index notching its 34th record close in 2024. The S&P 500 jumped about 0.5% during the day’s session, while the Nasdaq advanced 0.9% as Tesla and Nvidia shares jumped. The 30-stock Dow added 0.17%, or 67.87 points, to end the week in the green as well. U.S. Treasury yields were higher on Monday as investors looked ahead to key economic data due throughout the week, including fresh inflation insights. The yield on the 10-year Treasury was up by less than 1 basis point at 4.281%. The 2-year Treasury yield also climbed more than 2 basis points to 4.62%. Asia-Pacific markets were mostly lower on Monday as investors awaited key economic data from the U.S. and China later this week, while election results in France overnight signaled a hung parliament. Japan’s Nikkei 225 fell 0.32% to close at 40,780.7, while the broad-based Topix was 0.57% lower to end at 2,867.61. The losses come as Japan’s real wages fell for a 26th straight month. South Korea’s Kospi fell 0.16% to close at 2,857.76, while the small-cap Kosdaq climbed 1.39% to end at 859.27. Shares of heavyweight Samsung Electronics gained 0.34%, despite the company’s largest union slated to begin a three-day strike on Monday. Hong Kong Hang Seng index fell 1.68% as of its final hour of trade, while the mainland Chinese CSI300 slid 0.85% to close at 3,401.76, notching a fifth day of losses and marking its lowest level since February. Australia’s S&P/ASX 200 finished 0.76% lower at 7,763.2, marking a second straight day of losses. U.S. crude oil futures fell nearly 1% Monday as traders monitored the impact of Hurricane Beryl on Gulf Coast refining, production and export infrastructure. Beryl made landfall near Matagorda, Texas, as a Category 1 hurricane with maximum sustained winds of 80 miles per hour, according to the National Hurricane Center. Matagorda is about 150 miles northeast of Corpus Christi, a leading crude export facility in the U.S. U.S. crude oil closed lower on Friday while still booking a fourth consecutive weekly gain, as traders took advantage of recent prices after the benchmark touched a two-month high of $84.52 per barrel. West Texas Intermediate August contract: $82.51, down 65 cents, or 0.79%. Year to date, U.S. oil has gained 15.1%. Brent September contract: $86.02 per barrel, down 52 cents, or 0.61%. Year to date, the global benchmark is ahead 11.6%. Gold prices slipped on Monday, as investors booked profits after bullion hit a more than one-month high in the previous session on rising bets of U.S. interest rate cuts in September. Spot gold fell 0.8% at $2,371.70 per ounce, after rising to its highest level since May 22 on Friday. U.S. gold futures eased 0.7% to $2,379.90.
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