U.S. Index Futures Dip Amid Inflation Data Anticipation, Oil and Iron Ore Prices Retreat

On Monday, U.S. index futures fell slightly, signaling investor tension as they await new inflation data this week, closely monitored by the Federal Reserve, and keep an eye on the wave of significant earnings reports approaching, including Salesforce (NYSE:CRM), restaurants, and major retailers.

At 05:22 AM, Dow Jones futures (DOWI:DJI) fell 55 points, or 0.15%. S&P 500 futures dropped by 0.08%, and Nasdaq-100 futures retreated by 0.03%. The yield on 10-year Treasury bonds was at 4.244%.

In the commodities market, West Texas Intermediate crude oil for April fell 0.48%, to $76.12 a barrel. Brent crude for April dropped 0.53%, near $81.19 a barrel. Iron ore traded on the Dalian exchange fell 3.21%, to $121.56 per metric ton. Iron ore in China also closed lower, impacted by increased stocks in the largest consumer and by a slowdown in construction activity caused by adverse weather conditions, which intensified uncertainties about demand.

Asian markets showed a mix of results, with Japan’s Nikkei 225 index reaching new highs, while China saw the end of a streak of gains. The Nikkei rose 0.4%, marking a record above the 1989 historical peak. In contrast, China’s CSI 300 index fell 1.04%. Measures in South Korea to improve corporate governance had little effect on the Kospi, which fell 0.8%. Investors remain attentive to upcoming economic data, while Hong Kong’s Hang Seng index recorded a drop of -0.5%. Australia’s ASX 200 rose 0.1%.

European markets started the week on a negative trend, reflecting investor caution as they await new inflation data. The Stoxx 600 registered a slight decline, after reaching a record the previous week. The performance of sectors varied, with a notable drop in the mining sector, while the retail sector recorded a modest increase. The anticipation around the U.S. personal consumption expenditures price index, a key inflation indicator, adds a layer of anticipation to the market.

U.S. stocks followed Thursday’s rise but had a modest performance on Friday, with the Dow and S&P 500 hitting records. The movement reflected optimism about Nvidia (NASDAQ:NVDA), but the euphoria cooled, keeping the market cautious. Gold rose, while semiconductors and airlines fell, anticipating significant economic reports next week.

For Monday’s quarterly earnings front, companies scheduled to present financial reports before the market opens include Li Auto (NASDAQ:LI), Domino’s Pizza (NYSE:DPZ), Krystal (NASDAQ:KRYS), Freshpet (NASDAQ:FRPT), Elanco Animal Health (NYSE:ELAN), BioCryst Pharmaceuticals (NASDAQ:BCRX), among others.

After the market closes, investors await the results from Unity (NYSE:U), Zoom Video Communications (NASDAQ:ZM), Workday (NASDAQ:WDAY), Hims & Hers (NYSE:HIMS), iRobot (NASDAQ:IRBT), Oneok (NYSE:OKE), CarGurus (NASDAQ:CARG), Heico (NYSE:HEI), TransMedics (NASDAQ:TMDX), and more.