Traders work on the floor of the New York Stock Exchange in New York City, July 20, 2023.
Brendan McDiarmid | Reuters
US stock futures were little changed on Sunday, as investors eyed the latest reading of the Federal Reserve's favorable inflation reading as well as a series of big earnings reports.
Futures contracts tied to the Dow Jones Industrial Average fell 0.04%, while futures contracts for the S&P 500 and Nasdaq 100 fell 0.04% and 0.05%, respectively.
Stocks are heading into the final week of February higher after major indexes hit new milestones on Friday and posted winning weeks helped by Nvidia's huge earnings. The blue-chip Dow closed at an all-time high of 39,131.53, the broad-market S&P 500 at one point in the session broke above 5,100 for the first time, and the tech-heavy Nasdaq Composite touched a 52-week high in Friday's session.
Investors are now watching whether AI momentum can continue as economic and inflationary risks persist. With that in mind, they are also eyeing the monthly Personal Consumption Expenditures Price Index, the Fed's preferred measure of inflation due on Thursday.
“Nvidia has been the gift that keeps on giving with blockbuster earnings reports sending the near-terminal, technology and broader market higher over the past week. With the market now up over 20% since its October 2023 low, we expect the market to take A difficult situation.” “We will stop at some point,” Stephanie Lange, chief investment officer at Homerich Berg, told CNBC. “A hotter-than-expected personal consumption expenditures report this week may be a data point that could dampen market enthusiasm.”
“So far, stocks have ignored the Fed's hawkish tone, as the AI aura has taken center stage, but the market is counting on the Fed orchestrating a soft landing, and the longer the Fed waits, the greater the risks associated with that,” she added. “Happy ending.” “The Fed remains well aware that it wants to avoid a repeat of the intermittent interest rate tightening of the 1970s when it failed to control inflation, so it remains patient to ensure it is confident in accomplishing its mission.”
There is a raft of economic releases, including January durable orders data on Tuesday and January wholesale inventories on Wednesday.
Elsewhere, corporate profits are falling, but several high-interest names will be announced next week, which could give investors greater insight into the state of technology and the consumer.
Salesforce is the big name in technology this week; He is scheduled to report on Wednesday. There are also restaurants and several major retailers on deck, along with Danish Cruise, AMC Entertainment, JM Smucker, Hormel and Anheuser-Busch.
