© Reuters
Investing.com — U.S. stock futures fell Monday, with investors nervous ahead of the release of crucial inflation data that could influence the Federal Reserve’s future musings on potential interest rate cuts.
At 06:50 ET (11:50 GMT), the contract was down 160 points, or 0.4%, was down 4 points, or 0.1%, while essentially flat.
Wall Street suffered a disappointing start to the year last week, posting its first week of losses in 10 weeks, as investors reassessed the chances of an early rate cut by the U.S. central bank in 2024.
Blue-chips fell 1.5% last week, broad slipped 0.6% and tech-heavy posted its worst weekly performance since September, falling 3.3% due to the increase in Treasury yields.
The publication of the CPI will provide clarity on rates
Friday’s US monthly reading was stronger than expected and, combined with the minutes of the Fed’s latest meeting, increased uncertainty about what the US central bank plans to do with interest rates at the start of the new year.
The head of the Dallas Fed even warned on Saturday that rates could be raised again.
“If we do not maintain sufficiently tight financial conditions, there is a risk that inflation will rise again and reverse the progress made,” he said. “In light of the easing of financial conditions in recent months, we should not yet rule out the possibility of another rate hike.”
US inflation data on Thursday may offer more clarity: it is seen rising 0.2% month-on-month, with an annual increase of 3.2%.
The crucial core figure is up 0.2% month-on-month, dragging the annual pace to 3.8%, a level not seen since mid-2021.
The president of the Atlanta Fed, , will speak during Monday’s session and his opinions will be carefully studied to know his point of view on the easing of monetary policy.
Boeing collapses after 737 Max grounding
In the corporate sector, Boeing (NYSE:) stock fell sharply in premarket trading after the Federal Aviation Administration ordered the temporary grounding of about 171 Boeing jets in the wake of an in-flight failure of a 737 Max last week.
Additionally, shares of Alaska Air (NYSE:) fell more than 4% after the carrier canceled more than 200 flights following the FAA order.
Quarterly earnings season begins Friday, with results from big banks Bank of America (NYSE:), Citigroup (NYSE:), JPMorgan Chase (NYSE:), and Wells Fargo (NYSE:).
Crude Oil is on course for weekly gains
Oil prices fell on Monday after Saudi Arabia cut prices of its Asian crude exports to two-year lows, adding to the current narrative that global demand remains weak.
As of 6:50 a.m. ET, the futures were down 2.9% at $71.68 a barrel, while the contract fell 2.7% to $76.62 a barrel.
Top crude exporter Saudi Arabia on Sunday cut the official February selling price of its Asian flagship Arab Light crude to its lowest level in 27 months.
However, despite concerns over global economic activity, both benchmarks rose more than 2% last week due to rising geopolitical tensions in the Middle East, following attacks by Yemen’s Houthis on ships in the Red Sea, which have caused disruptions to transport activity in the region.
It also fell 1.1% to $2,026.70/oz, while it fell 0.1% to 1.0937.
(Oliver Gray contributed to this article.)