Key inflation report and earnings season in focus

U.S. stock index futures were largely unchanged on Monday as investors braced for a key week that will be dominated by key inflation reports, testimony from Federal Reserve Chairman Jerome Powell and the start of the second-quarter earnings season.

Friday’s nonfarm payrolls report, which showed a slowdown in U.S. job growth, fueled expectations of potential rate cuts by September, with traders assigning a 70% probability of a 25-basis-point cut, according to CME FedWatch data. Attention now turns to Thursday’s release of the June consumer price index, which is expected to signal modest gains in both core and headline inflation.

The S&P 500 and Nasdaq closed at record highs on Friday, driven by gains from tech giants like Meta Platforms and Microsoft. Upcoming earnings reports from major banks, starting July 12, and Powell’s half-year earnings report will be closely watched for market direction.

(Disclaimer: Based on information obtained from the agency.)