Traders work on the New York Stock Exchange floor on November 12, 2024 in New York City.
Source: NYSE
U.S. stock futures traded near the flatline Tuesday night as Wall Street awaited the latest consumer price index data for insights on the pace of inflation.
Futures tied to the Dow Jones Industrial Average slipped just 16 points, or 0.04%. S&P 500 futures and Nasdaq 100 futures inched down 0.05% and 0.09%, respectively.
The major averages fell during Tuesday’s main trading session as the market took a breather from its postelection rally. The 30-stock Dow fell around 382 points, or 0.9%. The S&P 500 declined 0.3%, while the tech-heavy Nasdaq Composite inched down 0.1%.
Part of the market decline Tuesday “is just a little bit of a profit-taking based on the strong gains — especially post election — and some of it may be just some positioning ahead of tomorrow’s inflation report and Friday’s retail sales report,” said Tom Hainlin, senior investment strategist at U.S. Bank Wealth Management.
Investors will be looking toward October’s CPI numbers, scheduled for release Wednesday morning, to see how much the costs of goods and services have risen. Economists surveyed by Dow Jones are expecting the CPI to increase 0.2% for the month, which would put the 12-month rate at 2.6%. The pace of price increases is also one of the key components to informing the Federal Reserve’s decision to cut or maintain interest rates.
Other notable economic data releases later this week include the producer price index data and retail sales numbers, which will be announced on Thursday and Friday, respectively.
“This is a busy week with consumer prices, producer prices, and retail sales. All of which could signal that the economy remains strong,” said Scott Helfstein, head of investment at Global X ETFs.
To be sure, he added, “Ironically, markets may be less sensitive to data this week after the election and the Fed cut last week.”
