Traders work on the floor of the New York Stock Exchange on the last day of trading for the year on Dec. 31, 2024 in New York City.
Spencer Platt | Getty Images
Stock futures were little changed on Sunday as investors look toward a data-heavy week, which includes the December report on U.S. inflation and big bank earnings.
Futures tied to the Dow Jones Industrial Average gained 60 points, or 0.1%. S&P 500 futures edged higher by 0.01%, while Nasdaq 100 futures added 0.04%.
This week will give investors a clearer picture of the state of the economy following a blowout jobs report last week that sent stocks tumbling. The stronger-than-expected nonfarm payroll report raised concerns that the Federal Reserve will proceed with caution moving forward, which casts doubt on further interest rate cuts.
Investors will also monitor the kickoff of the fourth-quarter earnings season in earnest, with banks including Citigroup, Goldman Sachs and JPMorgan Chase reporting on Wednesday. Morgan Stanley and Bank of America will post results on Thursday.
The 30-stock Dow and S&P 500 both ended the week 1.9% lower, while the Nasdaq Composite lost 2.3%, with all three indexes notching their second-consecutive weekly loss.
“With current inflation and inflation expectations elevated and sticky, and with bond yields having risen sharply and quickly, equity investors are starting to become more cautious,” said Katherine Nixon, chief investment officer for wealth management at Northern Trust. “In a classic ‘too much of a good thing,’ the constructive growth backdrop is leading to a higher-for-longer interest rate forecast.”
Traders currently give more than 97% odds that the central bank will leave rates unchanged at its Jan. 29 meeting, and a nearly 75% chance that the Fed holds the line again in March, according to the CME FedWatch Tool.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December’s producer price index report on Tuesday. Wall Street also await commentary from Kansas City Fed President Jeffrey Schmid and New York Fed President John Williams on Tuesday.