Stock Futures Steady Ahead of U.S. Inflation Report: Market Overview

Futures for the S&P 500 and Nasdaq 100 remained mostly unchanged, while the MSCI All Country World Index extended its longest winning streak since January. In New York, copper futures hit a record high following a short squeeze, causing a rush to redirect metal from other regions to the U.S.

Treasury yields dipped, and the dollar softened slightly as the market awaited the U.S. consumer price index (CPI) data. The data is expected to show a modest decrease in price increases. Core CPI, which excludes food and energy costs, is projected to slow to 0.3% month-on-month, down from 0.4%.

“There’s a general expectation that the data will show cooling from last month, and the market seems to be positioned for that,” said Samuel Zief, head of global FX strategy at JPMorgan Chase Bank. “However, if the data comes in hot, we could see a significant rally in the dollar.”

A survey by 22V Research indicated that 49% of investors expect a "risk-on" market reaction to the CPI report, while 27% anticipate a "risk-off" response.

The recent surge in meme stocks subsided, with GameStop Corp. and AMC Entertainment Holdings Inc. losing most of their premarket gains.

Boeing Co. shares dipped slightly after the U.S. Justice Department found that the company had violated a deferred-prosecution agreement related to two fatal crashes from five years ago.

In Europe, the benchmark index reached a new high as rising copper prices boosted mining stocks. The region could benefit further from potential rate cuts, with Bank of France Governor Francois Villeroy de Galhau suggesting the European Central Bank is likely to ease policy next month.

In commodities, oil traded within a narrow range after the International Energy Agency reduced its 2024 demand growth forecast. Gold continued to rise, gaining almost 1% on Tuesday.

Key Events This Week:

• Japan GDP and industrial production (Thursday)

• U.S. housing starts, initial jobless claims, and industrial production (Thursday)

• Speeches by Philadelphia Fed President Patrick Harker, Cleveland Fed President Loretta Mester, and Atlanta Fed President Raphael Bostic (Thursday)

• China property prices, retail sales, and industrial production (Friday)

• Eurozone CPI (Friday)

• U.S. Conference Board leading index (Friday)

Market Overview as of 7:47 a.m. New York Time:

Stocks:

• S&P 500 futures: Little changed

• Nasdaq 100 futures: Little changed

• Dow Jones Industrial Average futures: Little changed

• Stoxx Europe 600: Up 0.3%

• MSCI World Index: Up 0.1%

Currencies:

• Bloomberg Dollar Spot Index: Down 0.2%

• Euro: Steady at $1.0826

• British Pound: Up 0.1% to $1.2610

• Japanese Yen: Up 0.5% to 155.70 per dollar

Cryptocurrencies:

• Bitcoin: Up 1.4% to $62,427.01

• Ether: Up 0.1% to $2,894.54

Bonds:

• 10-year U.S. Treasury yield: Down three basis points to 4.41%

• 10-year German yield: Down eight basis points to 2.47%

• 10-year British yield: Down six basis points to 4.11%

Commodities:

• West Texas Intermediate crude: Down 0.7% to $77.49 a barrel

• Spot gold: Up 0.2% to $2,363.60 an ounce

Also Read: GameStop Stock Soars Nearly 100% as Meme Stocks Make a Comeback