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US Stock Futures Inch Lower, PCE Inflation Test Looms This Week

by Jennifer

In evening trading on Sunday, U.S. stock index futures experienced slight declines, reflecting volatile swings on Wall Street fueled by concerns over high interest rates. As the week unfolds, attention shifts to key Personal Consumption Expenditures (PCE) inflation data for further guidance on potential rate movements.

Ahead of the Memorial Day holiday on Monday, trading volumes remained subdued.

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S&P 500 Futures dipped 0.1% to 5,316.25 points, while Nasdaq 100 Futures slid 0.2% to 18,837.50 points by 19:53 ET (23:3 GMT). Dow Jones Futures also declined 0.1% to 39,122.0 points.

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Awaiting PCE Inflation Data for Rate Cues

Investors eagerly anticipate the release of the PCE price index data, scheduled for this Friday, which serves as the Federal Reserve’s preferred inflation gauge.

While expectations suggest a moderation in personal spending and consumption, recent warnings from the Fed regarding persistent inflationary pressures have tempered anticipations for interest rate cuts this year. Consequently, investors have adjusted their outlook, with the CME Fedwatch tool indicating an increased probability of the Fed maintaining steady rates in September.

Wall Street Sees Volatility Near Record Highs

Last week, Wall Street witnessed some record highs driven by positive earnings, notably from NVIDIA Corporation (NASDAQ), a market favorite.

This buoyed the tech-heavy NASDAQ Composite to a record-high close on Friday, accompanied by gains throughout the week. However, other sectors experienced mixed performances, with the S&P 500 and Dow Jones Industrial Average reflecting varied weekly results.

While the S&P ended the week relatively unchanged, the more economically sensitive Dow registered a decline of over 2%. Specifically, the S&P 500 closed at 5,304.72 points, up 0.7%, while the Nasdaq reached a record high of 16,920.79 points, closing up 1.1%. Conversely, the Dow ended flat at 39,069.59 points.

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