In evening trading, U.S. stock index futures edged higher, mirroring a modestly positive session on Wall Street. Investors maintained a cautious stance ahead of crucial inflation data that is anticipated to influence interest rate projections.
Amidst ongoing commentary from the Federal Reserve and the commencement of the first-quarter earnings season, market sentiment remained cautious. Following a lackluster start to April, Wall Street has largely maintained a holding pattern in recent sessions.
As of 19:12 ET (23:12 GMT), S&P 500 Futures showed a 0.05% increase to 5,262.75 points, while Nasdaq 100 Futures rose by 0.07% to 18,373.50 points. Similarly, Dow Jones Futures displayed a 0.06% uptick to 39,218.0 points.
CPI Data Awaited for Interest Rate Clues
Investor attention shifted towards the forthcoming release of consumer price index (CPI) data for March, scheduled for Wednesday. Projections suggest a slight uptick in year-on-year inflation to 3.4%, maintaining a notable margin above the Federal Reserve’s annual 2% target.
The anticipated scenario provides limited motivation for the Fed to initiate early interest rate cuts, particularly considering recent data indicating robust performance in the U.S. labor market. In light of persistent inflation, several Fed officials have emphasized the flexibility to maintain higher rates for an extended period.
Wall Street Remains Steady with Fed Minutes and Earnings Season On Horizon
In recent sessions, Wall Street indexes have navigated within a range, impacted by profit-taking in tech heavyweights amid dwindling risk appetite in the wake of prolonged higher interest rates.
On Tuesday, the S&P 500 posted a modest 0.1% increase to 5,209.91 points, while the NASDAQ Composite rose by 0.3% to 16,306.64 points. The Dow Jones Industrial Average concluded the session flat at 38,883.67 points.
Notably, market standout NVIDIA Corporation (NASDAQ:NVDA) witnessed a 2% decline during the session, touching a one-month low in after-hours trading. Cooling enthusiasm surrounding artificial intelligence prompted traders to secure profits following a remarkable uptrend in the stock.
With the release of the Fed’s March meeting minutes expected on Wednesday, investors anticipate further clarity regarding the bank’s stance on potential interest rate cuts this year. Despite the Fed’s reiterated projection for a 75 basis point cut, diverging views among Fed officials persist, particularly amidst sustained inflationary pressures.
Moreover, investors remained on edge in anticipation of the first-quarter earnings season, assessing whether Wall Street can validate the substantial valuation surge observed in the initial quarter. Key players such as JPMorgan Chase & Co (NYSE:JPM), Citigroup Inc (NYSE:C), and Wells Fargo & Company (NYSE:WFC) are set to kick off the earnings season on Friday, alongside quarterly reports from Delta Air Lines Inc (NYSE:DAL) and BlackRock Inc (NYSE:BLK) later this week.
