Following the lackluster performance seen over the two previous sessions, stocks may continue to experience choppy trading early on Monday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by less than a percent.
Traders may be reluctant to make significant moves ahead of several key events later this week, including the Federal Reserve’s monetary policy meeting.
The Fed is due to announce its latest monetary policy decision on Wednesday, when the central bank is widely expected to leave interest rates unchanged.
Since the decision is largely seen as a foregone conclusion, traders are likely to pay closer attention to Fed officials’ latest projections for the economy and rates.
Ahead of the Fed announcement, the Labor Department is scheduled to release its report on consumer price inflation in the month of May.
Economists currently expect consumer prices to inch up by 0.1 percent in May after climbing by 0.3 percent in April, while core consumer prices, which exclude food and energy prices, are expected to increase by 0.3 percent for the second straight month.
The annual rate of growth by consumer prices is expected to come in unchanged at 3.4 percent, but the annual rate of core consumer price growth is expected to slow to 3.5 percent in May from 3.6 percent in April.
Reports on producer prices, import and export prices and consumer sentiment and inflation expectations may also attract attention later in the week.
Stocks showed a lack of direction over the course of the trading day on Friday, extending the lackluster performance seen during Thursday’s session. The major averages spent the day bouncing back and forth across the unchanged line before closing modestly lower.
After reaching a new record intraday high in early afternoon trading, the S&P 500 ended the day down 5.97 points or 0.1 percent at 5,346.99. The Dow also dipped 87.18 points or 0.2 percent to 38,798.99, while the Nasdaq slipped 39.99 points or 0.2 percent to 17,133.13.
For the week, the Nasdaq surged by 2.4 percent and the S&P 500 jumped by 1.3 percent. The narrower Dow posted a more modest gain, rising by 0.3 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with several markets closed for holidays. Japan’s Nikkei 225 Index advanced by 0.9 percent, while South Korea’s Kospi slid by 0.8 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the French CAC 40 Index has tumbled by 1.6 percent, the German DAX Index is down by 0.5 percent and the U.K.’s FTSE 100 Index is down by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.81 to $76.34 a barrel after edging down $0.02 to $75.53 a barrel last Friday. Meanwhile, after plummeting $65.90 to $2,325 an ounce in the previous session, gold futures are slipping $0.60 to $2,324.40 an ounce.
On the currency front, the U.S. dollar is trading at 156.99 yen versus the 156.75 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0751 compared to last Friday’s $1.0801.
Business News
U.S. Stocks May Lack Direction Ahead Of Fed Meeting, Inflation Data
2024-06-10 12:49:32
