Investing.com – U.S. stock index futures rose in after-hours trade on Sunday after Wall Street bounced off hotter-than-expected jobs data and the focus is now on upcoming inflation data for further interest signals. rates.
The anticipation of first-quarter earnings season, which begins this week, is also expected to keep Wall Street on edge.
Stronger-than-expected data on Friday caused traders to sharply lower expectations that the Federal Reserve will cut interest rates as soon as June, an idea that is expected to cap any significant upside potential on Wall Street.
by 19:14 ET (2314 GMT) was up 0.1% to 5,258.0 points and up 0.1% to 18,318.50 points. increased by 0.16% to 39,286.0 points.
Wall Street Strong Despite Wage Shock and Next CPI Test
Wall Street indexes closed higher on Friday despite stronger-than-expected jobs data, benefiting from bargain hunting after falling for much of the week. US stock indices continued to show their first weekly decline in three weeks.
On Friday, the index rose 1.1% to finish at 5,204.34 points and rose 1.2% to 16,248.52 points. The increase was 0.8% to 38,904.04 points. All three indexes lost between 0.8% and 2.3% last week.
The current focus is on March CPI data, which will be released on Wednesday. While the data is expected to show some decline in inflation, it is expected to remain well above the Federal Reserve’s annual target of 2%.
The data also comes after repeated warnings from Fed officials that persistent inflation will lead to a delay in interest rates in early 2024.
The Fed’s March meeting is due on Wednesday and is also expected to provide more signals about a potential rate cut.
But Friday’s inflation data and some hawkish comments from Fed officials showed traders had largely overestimated expectations for a rate cut in June. Traders now see about a 51% chance of a 25 basis point rate cut in June, according to .
Earnings for the first quarter begin, the bank’s results are already known
The focus will also be on the first-quarter earnings season to assess whether major U.S. stocks can justify the recent rise in valuations. In 2024, all Wall Street indexes were trading about 10% higher and near all-time highs.
The largest American creditors of JPMorgan Chase & Co (NYSE:), Citigroup Inc (NYSE:) and Wells Fargo Co. & Company (NYSE:) will report earnings on Friday.
Delta Air Lines Inc (NYSE:) and leading asset manager BlackRock Inc (NYSE:) will also provide quarterly updates throughout the week.