Investing.com – U.S. stock index futures were little changed in evening trading on Monday after a subdued session on Wall Street, as expectations for key inflation data later this week prevented large transactions.
But Wall Street seems to have found some calm again after the violent price fluctuations of the past week, in which speculation about a recession in the USA increased volatility on the stock markets.
stabilized at 5,471.0 points, while it was unchanged at 18,645.25 points at 19:06 ET (23:06 GMT). rose slightly to 39,402.0 points.
Consumer price index inflation expected as a signal for further interest rate cuts
The focus this week is entirely on the inflation data, which will be released on Wednesday and will provide further clues about the US economy.
Analysts expect inflation to fall slightly in July from the previous month, increasing confidence that inflation is easing and giving the Federal Reserve more room to start cutting interest rates.
Traders are divided on whether a 25 or 50 basis point cut would make sense in September, with signs of easing inflation likely adding weight to a larger cut.
But uncertainty ahead of the release of the numbers caused trading on Wall Street to move sideways, with investors being particularly cautious following increased volatility last week.
The index closed unchanged at 5,344.39 points, while on Monday it rose 0.2% to 16,782.57 points. The index fell 0.4% to 39,357.01 points.
In addition to the CPI figure, data is also expected later this week that will provide further indications of the economy. All signs of an economic slowdown speak in favor of interest rate cuts, but are also likely to increase concerns about a slowdown in economic growth.
Earnings from retailers and chipmakers expected this week
While the second quarter reporting season is largely over, the results of major retailers Home Depot Inc (NYSE:) and Walmart Inc (NYSE:) are due this week.
Both are likely to provide further indications of the strength of consumer spending, which in turn will influence the inflation and economic outlook.
Despite pressure from high interest rates, inflation in the US this year was largely due to strong consumer spending.
More chip manufacturing results are also expected this week; Applied Materials Inc (NASDAQ:) is set to release its report on Thursday.
