U.S. stock futures indicate a cautious and relatively flat open Monday, following last week’s strong rally. Investors appear hesitant, holding back until several critical economic reports arrive later this week.
The spotlight is on Tuesday’s July consumer price index (CPI) report from the Labor Department, which is expected to shape market expectations around Federal Reserve rate policy.
Economists predict consumer prices rose by 0.2% last month, down slightly from June’s 0.3% increase. On an annual basis, inflation is forecast to tick up to 2.8% from 2.7%.
Core inflation — excluding food and energy — is expected to rise 0.3% in July, slightly above June’s 0.2%, lifting the yearly rate to 3.0% from 2.9%.
Ahead of the data release, the CME Group FedWatch tool shows an 86% chance the Fed will lower interest rates by a quarter point in September.
Additional data on producer prices, retail sales, and industrial output will also be in focus throughout the week.
After a mixed Thursday session, stocks closed mostly higher on Friday, pushing the Nasdaq to a new all-time closing high.
The tech-heavy Nasdaq added 207 points, or 1.0%, finishing at 21,450. The S&P 500 gained 49 points, or 0.8%, to 6,389, while the Dow climbed 207 points, or 0.5%, to 44,176.
For the week, the Nasdaq soared nearly 4%, the S&P 500 rose 2.4%, and the Dow advanced 1.4%.
Wall Street shrugged off concerns about new tariffs imposed by President Donald Trump on multiple trade partners, which came into effect overnight.
Apple (NASDAQ:AAPL) was a key driver, surging 4.2% to its highest close in five months after unveiling plans to invest about $600 billion in the U.S. over four years.
The NYSE Arca Computer Hardware Index rose 1.4%, while the KBW Bank Index climbed 1.2%, reflecting gains in financial stocks.
Oil service companies, brokerage firms, and networking stocks showed strength, whereas commercial real estate stocks declined.
Among individual movers, LegalZoom.com (NASDAQ:LZ) soared 31% after a Bank of America upgrade to Buy.
TripAdvisor (NASDAQ:TRIP) jumped 11.7% following a strong earnings report for the second quarter.
On the downside, Trade Desk (NASDAQ:TTD) shares dropped 38.6% after several Wall Street firms downgraded the stock despite solid earnings.
Sweetgreen (NYSE:SG) plunged 23.1% after missing earnings expectations and cutting its full-year revenue outlook.
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