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US stock futures steady with inflation, rate cuts in focus

Published 09/10/2024, 09:06 AM
© Reuters
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Investing.com-- U.S. stock index futures were range bound in evening deals on Monday after Wall Street rebounded from last week’s losses, with focus turning to upcoming inflation data for more cues on interest rates. 

Wall Street was hit with its worst selldown in years last week, as technology stocks lost more ground and as investors priced in a potentially weaker outlook for the U.S. economy. 

U.S. stocks also took limited cues from Apple Inc (NASDAQ:AAPL), which moved little after the reveal of its latest line of iPhones. 

S&P 500 Futures rose 0.1% to 5,484.25 points, while Nasdaq 100 Futures steadied at 18,700.25 points by 20:04 ET (00:04 GMT). Dow Jones Futures were flat at 40,873.0 points. 

CPI data on tap as Sept rate cut looms 

Focus this week is squarely on consumer price index inflation data for August, due this Wednesday. The reading is expected to show inflation eased further in August, with any reductions in core CPI inflation furthering the case for lower interest rates. 

Wednesday’s reading is likely to factor into expectations of interest rates this year, and comes just a week before a Federal Reserve meeting where the central bank is widely expected to cut interest rates by 25 basis points. 

Markets are pricing in a 72% chance the Fed will cut rates by 25 bps, CME Fedwatch showed. Lower rates bode well for stock markets, offering investors some relief after a bruising selldown last week.

The S&P 500 rose 1.2% to 5,471.05 points, while the NASDAQ Composite rose 1.2% to 16,884.59 points on Monday. The Dow Jones Industrial Average rose 1.2% to 40,829.59 points. 

Focus this week is also on a debate between Presidential candidates Donald Trump and Kamala Harris on Tuesday, which is expected to offer more clarity on the 2024 elections. 

Apple unchanged after iPhone 16 reveal, Arm surges 

Wall Street took middling cues from Apple Inc after the Cupertino-based technology giant unveiled its latest line of iPhone models.

The models will include a slew of new artificial intelligence features, which are expected to help increase device sales for the firm, which has been otherwise grappling with weaker sales over the past year. 

But Apple’s shares moved little after the reveal, with analysts raising some concerns over the company’s plans for a staggered roll out of its AI features. 

On the other hand, British chip designer Arm Holdings (NASDAQ:ARM) rose 1% in aftermarket trade following a 7% rally during the session, after Apple said that the chips powering its flagship devices will be run on Arm architecture. 

 

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