S&P 500 Futures Remain Unchanged as Investors Wait for Inflation Data: Latest News
Stocks in the US had a mixed run this week amid global concerns over rising inflation and the pace of economic recovery. Tech stocks soared while small-cap stocks slipped. Investors also remain cautious as they look towards the closely followed inflation data eagerly anticipated by the market.
S&P 500 futures traded flat, with the tech-heavy Nasdaq 100 futures up 0.10%, and the Dow futures (YM=F) down 0.03%.
Investors are currently refocusing on the data charts, as inflationary pressures and the pandemic continue to pose risks to the economy.
Many market analysts say that one of the most significant drivers of stock prices in the coming months will be the acceleration rate of inflation. The overall pace of economic growth could be undermined if inflation rises too quickly as it could lead to higher interest rates and a slowdown in consumer spending.
Furthermore, softening demand could lead to reduced investment and delay a recovery in employment. Investors will carefully scrutinize the inflation data released on Wednesday to determine whether policymakers will start to withdraw their pandemic-driven support measures.
Meanwhile, a new batch of corporate earnings will be made public this week, including performance reports for Walt Disney (DIS), Palantir Technologies (PLTR), and Coinbase (COIN).
In cryptocurrency news, Bitcoin prices traded within the $56,000-$59,000 range on Monday following Tesla CEO Elon Musk’s tweet that he would ‘potentially’ resume Bitcoin payments. However, electric power usage remains a significant obstacle for a full Tesla – Bitcoin payment reconciliation at this point.
Other cryptocurrencies like Ethereum and Dogecoin have also been showing signs of upward momentum this week.
Overall, the stocks market has been a little volatile this week, and investors are wary about getting bearish or overly bullish in their investment strategies until they see the latest inflation data. The next few trading days could be critical in determining market direction based on the Federal Reserve’s monetary policy and the ongoing COVID-19 pandemic.