Stay Updated: Stock Futures Steady as July Inflation Report Approaches – Live Insights!

Traders were busy on the floor of the New York Stock Exchange as they watched stock futures on Monday. Overall, the Dow Jones Industrial Average slipped a tiny bit, down 9 points, or 0.02%. The Nasdaq and S&P 500 futures stayed steady, not changing much at all.

Investors are eagerly waiting for the consumer price index (CPI) report set for Tuesday. This report will give clues about how the Federal Reserve might tackle interest rates in the near future. With the S&P 500 close to its all-time high, economists are predicting a 0.2% increase for the CPI in July, with a 2.8% rise compared to last year. For “core CPI,” which excludes food and energy costs, a 0.3% boost is expected month-over-month, with a 3.1% annual increase.

Interestingly, investors didn’t seem too fazed by President Donald Trump’s announcement about extending a 90-day freeze on increased tariffs for Chinese goods. Brent Schutte, the chief investment officer at Northwestern Mutual Wealth Management, shared his thoughts, saying, “Investors seem to be banking on rate cuts to offset tariff impacts. But it might be too early to think that way.” He noted that the effect of tariffs on the economy is still uncertain. High stock prices may make any negative news hit investors harder.

Along with the CPI report, Wall Street will also look at the producer price index (PPI) report later in the week to gauge wholesale inflation. Both reports are coming out before the Federal Reserve’s big meeting in Jackson Hole later this month, where they will discuss their policies. Current market data suggests there’s an 87% chance of an interest rate cut next month—something traders are closely monitoring.

Historically, the way markets react to inflation reports has shifted over the years. For example, during the 1970s, high inflation often led to significant stock market downturns. Nowadays, while inflation still causes jitters, many investors believe central bank actions, like interest rate cuts, can bring stability.

Social media is buzzing as well. Tweets and posts show a mix of optimism and caution as investors weigh their next moves.

For more on how inflation impacts the economy and current trends, check out the CME’s FedWatch Tool. It’s a handy resource for tracking expectations about Federal Reserve interest rates.

In summary, as traders keep a watchful eye on upcoming reports, the interplay of inflation, tariffs, and interest rates will set the stage for the stock market in the near future.

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