Wall Street awaits key reports amid economic worries

Wall Street futures were largely unchanged on Monday as investors braced for a week packed with key economic indicators. The focal points will be a significant inflation report, testimony from Fed Chair Jerome Powell and the start of the second-quarter earnings season.

Friday’s jobs report reinforced the belief that a Federal Reserve rate cut in September is likely, with futures now indicating a 77% chance of such a move. S&P 500 and Nasdaq futures were nearly unchanged, while major financial institutions such as Citigroup, JP Morgan and Well Fargo are due to report on Friday, signaling the start of earnings season.

The U.S. consumer price report, due Thursday, is expected to show a slowdown in core inflation to 3.1% from 3.3%, with the core indicator remaining at 3.4%. The June CPI report is particularly key, expected to continue the trend of easing inflation. Inflation data from Germany and China are also due out this week.

Meanwhile, European stocks posted modest gains on Monday. In political news, France’s left-wing alliance surprisingly took a lead over the far right in Sunday’s election, posing a challenge to President Emmanuel Macron’s pro-market reforms.

Elsewhere in commodity markets, oil prices fell as the market monitored the potential impact of Hurricane Beryl on supplies in the Gulf of Mexico.

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