U.S. stock futures rise slightly in light trading thanks to access to PCE data Investing.com
Investing.com– U.S. stock index futures were slightly higher in Monday evening trading, mainly focused on more clues on interest rates from key inflation data due to be released later this week.
Trading volume was down due to the Memorial Day holiday. However, trading volume is expected to increase this week as key economic indicators, including revised first quarter gross domestic product (GDP) data, are released.
By 19:06 ET (23:06 GMT), it was up 0.1% at 5,327.75 points and up 0.2% at 18,918.0 points. It rose 0.1% to 39,192.0 points.
PCE inflation test scheduled for this week
Data on the Fed’s preferred measure of inflation are due to be released this Friday.
The figures are likely to influence the central bank’s interest rate outlook and will be closely watched after Federal Reserve officials warned continued inflation would delay plans to ease monetary policy.
This has prompted traders to begin setting expectations for a rate cut in September. Traders are pricing a 50.7% chance that the central bank will keep interest rates steady and a 43.6% chance that rates will be cut by 25 basis points.
Inflation is expected to cool somewhat in Friday’s PCE figures. However, inflation is expected to remain well above the Fed’s 2% annual target range.
Wall Street expected to hit record high, volatility increasing
A rise in technology stocks, primarily market darling NVIDIA Corporation (NASDAQ:), helped push them to record highs last week. The index also recorded some gains during the week.
These too were at record levels, but most other sectors suffered losses due to higher concerns about long-term interest rates.
High interest rates make risk-oriented assets like stocks less attractive. It also limits the amount of market liquidity that can be invested in stocks.
On Friday, the S&P 500 closed up 0.7% at 5,304.72 points, while the Nasdaq rose 1.1% to a record high of 16,920.79 points. The Dow closed flat at 39,069.59 points.
