©Reuters. FILE PHOTO: A trader works at the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2024. REUTERS/Brendan McDermid
(Reuters) – U.S. stock index futures fell on Monday as investors await key inflation data this week that could provide clues to the path of the Federal Reserve’s monetary policy after mixed jobs data strengthened expectations of its easing by mid-year.
Wall Street ended the week lower on Friday, with high-flying chip stocks falling from record highs and a jobs market report showing more new jobs than expected, while the unemployment rate also rose unexpectedly.
The mixed report bolstered bets that the Fed will cut interest rates in June. Some traders are even betting on a rate cut in May after Friday’s data.
This week’s February data, including consumer prices (CPI), will offer further clues as to whether inflation has eased enough for policymakers to reduce borrowing costs in the coming months.
Sticky January inflation data and signs of a robust economy halted an AI-driven rally last month and led traders to postpone bets on the first June interest rate cut since March.
As of 5 a.m. ET, they were down 135 points, or 0.35%, they were down 10.25 points, or 0.2%, and they were down 33.5 points, or 0. 19%.
Nvidia (NASDAQ:) rose 1.2% in premarket trading, following a decline of more than 5% on Friday as chip stocks lost momentum.
Other chip stocks, including Qualcomm (NASDAQ:) and Broadcom (NASDAQ:), fell 0.5% and 0.8%, respectively.
Boeing (NYSE) fell 0.8% after news that the U.S. Department of Justice opened a criminal investigation into the 737 MAX crash on an Alaska Airlines flight.
LATAM Airlines (OTC:) Flight LA800, a Boeing 787-9 Dreamliner, told the New Zealand Herald that a “technical issue” had caused a “strong movement” on a flight from Sydney to Auckland, injuring at least 50 people.
Cryptocurrency and blockchain-related companies, including Coinbase (NASDAQ:) Global, Riot Platforms (NASDAQ:) and Marathon Digital (NASDAQ:), rose between 4.5% and 5.6% as bitcoin reached a new all-time high.
Eli Lilly (NYSE:) fell 1.7%, after losing 2.3% in the previous session.
The 2024 US presidential election is also in focus, with investors preparing for a likely rematch between former President Donald Trump and incumbent President Joe Biden.