Updated 1 min read
US stock futures drifted higher on Monday as investors set their sights on inflation data to highlight an otherwise light calendar for the first full trading week in the historically slowest month of the year.
Futures on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) both ticked up roughly 0.2%. Contracts on the Nasdaq 100 (NQ=F) were slightly more upbeat, trading about 0.3% higher.
Despite a pullback on Friday, the major US stock indexes are still just shy of all-time highs. The S&P 500 (^GSPC) ended last week just under 1% below its record, with the Nasdaq Composite (^IXIC) and Dow (^DJI) following closely behind.
This week’s spotlight will be on two key inflation reports: the producer price index (PPI) on Wednesday and the consumer price index (CPI) on Thursday. Together, the data will offer fresh insight into the strength of the economy and should serve as the final test on whether the Fed is on track to deliver a widely expected rate cut at its September meeting.
The reports follow a softer-than-expected August jobs print that bolstered hopes for easier monetary policy. Investors will be watching closely to see if inflation trends line up with that narrative, potentially clearing the path for stocks to extend their record-setting run.
Read more: The latest on Trump’s tariffs
The week ahead is light on earnings reports, with Oracle (ORCL), Adobe (ADBE), and Kroger (KR) the main highlights.
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Asian shares push up following news of Japan’s PM stepping down
Reuters reports:
Asian shares mostly rose with Japan’s benchmark jumping higher in Monday morning trading, despite the looming political uncertainty after Prime Minister Shigeru Ishiba announced last night he was stepping down as prime minister and head of his party.
Analysts said his announcement was expected for some time and welcomed it as moving things forward, although uncertainty remains as an election at the ruling Liberal Democratic Party, or LDP, will need to be held, with several legislators stepping forward as candidates.
“Markets may react short-term to the temporary uncertainty of lame-duck leadership, but this may resolve once a new leader is chosen. Meanwhile, the LDP’s position as a minority leading party is unlikely to change anytime soon, and as such compromise will be the name of the policy-making game,” said Naomi Fink, chief global strategist at Amova Asset Management.
Japan’s benchmark Nikkei 225 (^N225) gained 1.4% in morning trading to 43,630.54. South Korea’s Kospi (^KS11) gained 0.2% to 3,211.36. Australia’s S&P/ASX 200 (^AXJO) lost 0.3% to 8,845.50
Hong Kong’s Hang Seng (^HSI) edged up 0.3% to 25,487.02, while the Shanghai Composite rose 0.2% to 25,487.02.
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Gold hovers near all-time record as Fed rate cut expectations rise
Gold (GC=F) pushed back to near record highs as a weak August jobs report, coupled with expectations of a Federal Reserve rate cut, drew investors toward the precious metal.
Bloomberg reports:
