U.S. stock index futures were little changed Sunday night on Wall Street as investors prepared for key inflation data, after the market completely reversed its violent course last week.
Futures linked to the Dow Jones Industrial Average and the S&P 500 were trading slightly higher, while futures for the Nasdaq 100 rose 0.1%.
During the closing session last week, the Dow Jones Industrial Average fell 610.71 points, or 1.51%, at the close to 39,737.26 points. The S&P 500 index closed down 100.12 points, or 1.84%, at 5,346.56 points. The Nasdaq Composite Index fell 417.98 points, or 2.43%, at the close to 16,776.16 points.
The Dow Jones Industrial Average fell 0.6% during the week ending Friday, while the S&P 500 lost 0.04% for the week, and the Nasdaq Composite Index fell 0.18% during the week.
“Emotions are high and market volatility tends to cluster together, so I wouldn’t be surprised if we see another week of turmoil,” Ritholtz Wealth Management chief market strategist Kali Cox told CNBC.
“People are starting to prepare for a recession even if the crisis doesn’t materialize,” she added. “Fear often works to our advantage as stock market investors. More comfortable gains seem possible if economic data holds up, and price-sensitive sectors may continue to lead the market higher.”
Investors will be hoping this week for a better understanding of the state of the economy after recent concerns about a slowing labor market spooked traders and rattled the market. On Tuesday, they will be watching the July producer price index report, followed by the consumer price index on Wednesday, for further confirmation that price growth has continued to stabilize. Retail sales for July are also due on Thursday.
“Another round of good inflation data could help ease concerns that the Fed may be losing control,” Cox said. “Investors have been jumping to conclusions about the economy, and now they will have to analyze a new set of data to judge whether this sell-off really works.”
“Retail sales and retail earnings may show that fears of a slowing labor market are overblown,” she added. “We haven’t seen much in the way of worrying details about the U.S. consumer yet, so it’s important to look at the overall spending data rather than panicking over a lackluster jobs report.”
Home Depot will report earnings before the bell on Tuesday, and Walmart will report earnings on Thursday.
