U.S. stock futures exhibited little movement late Monday night following a notable surge in the Nasdaq Composite, which reached a new record high. The Dow Jones Industrial Average futures edged up by 31 points, reflecting a 0.07% increase, while S&P 500 futures and Nasdaq 100 futures saw gains of 0.06% and 0.05%, respectively.
In individual stock movements, Fox shares experienced a decline of over 2% after Lachlan Murdoch assumed control of the media conglomerate, a move that followed the resolution of a dispute regarding the family trust. Additionally, Dell Technologies saw its shares fall by 2% as Chief Financial Officer Yvonne McGill announced her resignation, which will take effect on Tuesday.
The overall sentiment on Wall Street was positive leading into the new week. The Nasdaq Composite had previously risen by 0.45%, buoyed largely by strong performances from key chipmakers like Broadcom and Nvidia that helped propel the tech-heavy index to record heights. In addition, the S&P 500 appreciated by 0.21%, while the Dow gained 114.09 points, or 0.25%.
As investors look ahead, two significant inflation reports are anticipated, which could greatly influence decisions made by Federal Reserve policymakers in their upcoming meeting. Last week revealed a weaker-than-expected jobs report, leading to speculation that interest rates may be lowered. However, any unexpected strength in the inflation data could complicate this outlook. The August Producer Price Index report is scheduled for release on Wednesday morning, followed by the Consumer Price Index on Thursday.
Torsten Slok, chief economist at Apollo Global Management, discussed the potential ramifications of these reports during an appearance on CNBC’s “Squawk on the Street.” “When the labor market is weakening, the Fed is supposed to cut rates. The problem is that for Thursday’s CPI number, the consensus is now expecting inflation to go up from 2.7% to 2.9%,” Slok noted. “And that is exactly muddying the picture, because when inflation goes up, the Fed should be hiking.”
Additionally, the NFIB Small Business Optimism Index is set to be released on Tuesday, providing further insights into the economic landscape. Any signs of weakening sentiment in this area could indicate trouble for the jobs market, particularly since small businesses play a crucial role in U.S. employment.
In other corporate news, GameStop and Oracle are scheduled to announce their earnings on Tuesday evening. Apple is also expected to make headlines as it prepares to showcase its latest range of devices, including a new iPhone, drawing significant attention from investors and tech enthusiasts alike.
