Last Updated: 4:15 PM EST
Stock indices finished today’s trading session mixed. The Nasdaq 100 (NDX) gained 0.16, while the S&P 500 (SPX) finished flat. In addition, the Dow Jones Industrial Average (DJIA) fell 0.36%. This comes after U.S. consumers lowered their inflation expectations in July for the medium term while keeping short- and long-term expectations stable, according to the Federal Reserve Bank of New York.
The survey showed that at the three-year horizon, median implied inflation dropped significantly to 2.3% from 2.9% in the previous month. However, one- and five-year inflation expectations remained unchanged at 3.0% and 2.8%, respectively.
On the job front, people are feeling a bit more secure as fewer are worried about losing their jobs. But when it comes to spending and income growth, the outlook is mixed, and more people are concerned about missing debt payments.
In addition, top U.S. executives have lowered their inflation predictions for the next year, according to the Cleveland Fed’s latest survey. They now expect the Consumer Price Index to go up by 3.4% over the next year, which is less than they thought before. This drop in expectations matches what consumers are thinking and could be a good sign for the Federal Reserve as it keeps an eye on the economy to decide when to lower interest rates.
First Published: 4:48 AM EST
U.S. futures were near the flatline on Monday morning as investors geared up for key inflation reports this week to gain insight into the Federal Reserve’s plans for interest rates. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.34%, 0.23%, and 0.07%, respectively, at 4:20 a.m. EST, August 12.
Last week, the three major indices ended in negative territory due to volatile trading of technology stocks and concerns about a potential U.S. recession. The S&P 500, the Dow Jones, and the Nasdaq Composite indices closed lower by 0.04%, 0.6%, and 0.18%, respectively.
This week, investors are looking ahead to several key economic reports, including July’s Producer Price Index (PPI) and Consumer Price Index (CPI) data points, scheduled for Tuesday and Wednesday, respectively. These reports will provide traders and investors with a clearer picture of inflation levels and the overall state of the U.S. economy.
Additionally, reports for Retail sales in July and June’s Business inventories will be released on Thursday. Moreover, a preliminary reading of the Michigan Consumer Sentiment Index for August is due on Friday.
Moving to corporate earnings, Home Depot (HD), Walmart (WMT), Alibaba (BABA), UBS Group (UBS), Deere (DE), Hut 8 Mining (HUT), and Nu Holdings (NU) are set to release their quarterly numbers this week. Today, Monday.com (MNDY) will report its Q2 results.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 3.951%. At the same time, WTI crude oil futures trended higher, hovering near $77.42 per barrel as of the last check.
Elsewhere, European markets opened higher today as investors awaited the release of the U.S. and U.K. inflation data points.
Asia-Pacific Markets Traded Mixed on Monday
Asia-Pacific indices traded with mixed results today as traders remained cautious ahead of a slew of economic reports from the region due this week.
Hong Kong’s Hang Seng index was up 0.12%. However, China’s Shanghai Composite and Shenzhen Component indices ended lower by 0.14% and 0.24%, respectively.
Today, the markets in Japan were closed in observance of the Mountain Day holiday.
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