U.S. stock index futures experienced slight declines in evening trading on Sunday amid concerns about rising interest rates, leading to volatile swings on Wall Street. Investors are now turning their attention to key Personal Consumption Expenditures (PCE) inflation data this week for further insights into potential rate adjustments.
Trading activity remained subdued ahead of the Memorial Day holiday on Monday. S&P 500 Futures dipped 0.1% to 5,316.25 points, while Nasdaq 100 Futures slipped 0.2% to 18,837.50 points by 19:53 ET (23:3 GMT). Dow Jones Futures also declined 0.1% to 39,122.0 points.
Investors are eagerly awaiting the release of the PCE price index data, the Federal Reserve’s preferred inflation metric, scheduled for this Friday. While expectations suggest a moderation in personal spending and consumption, recent Fed warnings about persistent inflationary pressures have tempered hopes for imminent interest rate cuts this year. Consequently, investors have adjusted their expectations, with the CME Fedwatch tool indicating a higher likelihood of the Fed maintaining steady rates in September.
Last week, Wall Street indices reached record highs, buoyed by positive earnings reports, notably from technology giant NVIDIA Corporation (NASDAQ).
Despite this, the broader market witnessed increased volatility. While the NASDAQ Composite achieved a record closing high on Friday and posted gains for the week, other sectors experienced mixed performances. The S&P 500 ended the week largely flat at 5,304.72 points, while the Nasdaq closed up 1.1% at a record high of 16,920.79 points. In contrast, the Dow Jones Industrial Average, considered more sensitive to economic conditions, declined by over 2% during the week, closing flat at 39,069.59 points.
