Futures on the New York Stock Exchange remained stagnant during early trading on Monday as investors cautiously await inflation data to be released later in the week. With the Consumer Price Index (CPI) set to be released on Wednesday, markets will be waiting to determine the likelihood of the Federal Reserve introducing interest rate cuts in the near future.
Contracts listed on the tech-heavy Nasdaq Composite index rose 0.3% higher, with futures on the S&P 500 and the Dow Jones Industrial Average rising marginally higher. The 10-year Treasury Yield rose to 4.45%, with 4.5% being viewed as a potential tipping point by some investors as it appears to be on track to return to last year’s highs.
Wednesday’s CPI report is expected to provide a deeper indication of whether the central bank will indeed consider implementing three rate cuts this year as previously mentioned by Fed Chair Jerome Powell. Investor anxiety was stoked last Thursday when Minneapolis Fed president Neel Kashkari claimed that the Fed may even forego interest rate cuts entirely this year depending on the trajectory of price pressures.