U.S. stock index futures edged lower on Monday, with S&P 500 and Nasdaq 100 futures seeing a slight dip of around 0.3%, while Dow Jones Industrial Average futures showed a marginal decline of 0.1%. The minor drop in stock futures comes at the beginning of a week filled with significant economic events and follows last week's rebound in U.S. indexes.
Investors are particularly focused on the upcoming Consumer Price Index report set for Tuesday, which is pivotal for the Federal Reserve's interest rate policy. The anticipation builds as Fed officials have hinted at further rate hikes to combat inflation.
Adding to the cautious sentiment, the U.S. government faces a potential shutdown if a decision isn't reached by Friday, November 17. Despite the downgrade of the U.S. debt outlook by Moody's (NYSE:MCO) and discussions around this fiscal challenge, market experts predict minimal impact on market activities from the negative watch status of the U.S. credit outlook.
In bond markets, the 10-year Treasury yield ticked up by 1 basis point to 4.64%, whereas the 2-year yield held steady at 5.06%.
Retail earnings reports are also in focus this week, with major big-box retailers such as Home Depot (NYSE:HD), Target, and Walmart (NYSE:WMT) poised to release their figures, offering insights into American consumer sentiment. This comes alongside earnings from Fisker (NYSE:FSR) and Tyson today, which will further contribute to the understanding of economic conditions.
The global economy is also under watch with a scheduled meeting on Wednesday between President Joe Biden and Chinese President Xi Jinping amid ongoing geopolitical tensions. This meeting is considered highly significant given its potential implications for international relations and economic stability.
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