Futures tied to the S&P 500 slipped 0.33%, Nasdaq 100 futures dropped 0.41, while futures tied to the Dow Jones Industrial Average shed 121 points, or 0.32%
S&P 500 futures edged down early Tuesday as the market comes off its first losing week in over a month.
Futures tied to the S&P 500 slipped 0.33%, while Nasdaq 100 futures dropped 0.41. Futures tied to the Dow Jones Industrial Average (DJIA) shed 121 points, or 0.32%.
The moves follow a losing week on Wall Street after economic data raised concerns that the Fed may not begin trimming interest rates as soon, or by as much, as market participants anticipated this year.
All three of the major indexes snapped five-week winning streaks. The technology-heavy Nasdaq Composite led the way down with a decline of over 1.3%, while the benchmark S&P 500 slid nearly 0.4%. The blue-chip Dow saw the narrowest loss, declining nearly 0.1%.
Wholesale prices rose more than anticipated by economists polled by Dow Jones between December and January, per producer price index data released Friday. That bolstered concerns over sticky inflation that were raised earlier in the week after the CPI came in at 3.1% on an annualized basis, higher than economists forecasted and well above the Fed’s goal of 2%.
The Fed will be concerned by the January CPI and PPI reports, said Bill Adams, chief economist at Comerica Bank. Momentum has built up in inflation over the past few years, and persists in many corners of the economy. January’s inflation data will reinforce the Fed’s inclination to reduce interest rates only gradually in 2024.
On the corporate earnings front, traders will monitor results from Home Depot and Walmart due before the bell. Attention will turn focus to Palo Alto Networks’ report expected after the bell.
