Stock Futures Mixed After Encouraging Inflation Data
U.S. stock futures were Mixed early Monday after data at the end of last week raised hopes that the Federal Reserve will soon be able to cut interest rates.
Futures for the Dow Jones Industrial Average added 59 points, or 0.2%. S&P 500 futures gained less than 0.1%, while contracts tracking the tech-heavy Nasdaq were down 0.1%. All three indexes finished lower Friday, but are still close to record highs.
Data on Friday showed a drop in the annual rate of inflation of the core personal consumption expenditures index, the Fed’s preferred measure. Slower inflation could lead to a rate cut before the end of the year, which would give stocks a boost. As the second half of the year starts, traders will have a shorter week because of the July 4 holiday on Thursday.
The PCE figures “added to the amassing evidence of inflation cooling in Q2,” said Deutsche Bank strategist Jim Reid. “The data also sent a mostly healthy signal on the U.S. consumer.”
Bond yields were little changed early Monday. The yield on the benchmark 10-year U.S. Treasury hovered around 4.4%. The yield on the 2-year note was at 4.762%.