Stock futures on the main three indexes are mixed in premarket trading. Stocks went way down and way back up last week but at the start of another week in August, when most traders would probably rather be on vacation, it looks like markets are now remaining calm.
Inflation may be the most important factor this week as investors anticipate what the Federal Reserve will do at its next meeting in September. Markets are currently pricing in either a quarter-point interest-rate cut or a half-point reduction, according to the CME FedWatch tool.
Key Events
Latest Updates
(AFP via Getty Images)
Stocks went way down and way back up last week. At the start of another week in August, when most traders would probably rather be on vacation, it looks like markets are now remaining calm.
Futures for the Dow Jones Industrial Average edged down 20 points, or 0.1%. Futures for the benchmark S&P 500 rose 0.1%, while contracts tied to the tech-heavy Nasdaq 100 were also up 0.1%. On Friday, the S&P closed near to where it had started before big drops, while the other two indexes finished just a little lower than at the start of the week.
While the big swings of the month so far may be warning that more volatility could lie ahead, traders could also be hoping for less drama the rest of the month. Most of the earnings season is over–though Home Depot, Cisco Systems, and Walmart will report this week. There are also some useful economic data due, including new figures on inflation, retail sales, and consumer confidence.
Inflation may be the most important factor this week as investors anticipate what the Federal Reserve will do at its next meeting in September. Markets are currently pricing in either a quarter-point interest-rate cut or a half-point reduction, according to the CME FedWatch tool.
“At the risk of tempting fate, financial markets seem to have got the past week’s hysteria out of their systems,” said Paul Donovan, an economist at UBS. “Inflation data is likely to be significant this week.”
Bond yields were little changed early Monday. The rate on the benchmark 10-year U.S. Treasury bond was at 3.958%, while the yield on the 2-year note was at 4.078%.
