tl;dr
Stock index futures inched lower on Tuesday, as investors turned their attention to the upcoming inflation reports and Federal Reserve Chairman Jerome Powell's speech. S&P 500 futures (SPX) -0.1%, Nasdaq 100 futures (US100:IND) -0.1%, and Dow futures (INDU) -0.2%. The 10-year Treasury yield (US10Y) ...
Stock index futures inched lower on Tuesday, as investors turned their attention to the upcoming inflation reports and Federal Reserve Chairman Jerome Powell's speech. S&P 500 futures (SPX) -0.1%, Nasdaq 100 futures (US100:IND) -0.1%, and Dow futures (INDU) -0.2%. The 10-year Treasury yield (US10Y) was unchanged at 4.48%. The 2-year yield (US2Y) was down 3 basis points to 4.85%. Traders are awaiting the producer price index data for April, which is expected to be released today before the bell. The forecast is for a monthly and annual rise of 0.3% and 2.2% respectively. April core PPI is seen to come flat on both monthly and yearly basis. April PPI data to show stable margins and slowing services price rises, Pantheon Macroeconomics said. "Focus for our economists will be on those components that feed into the core PCE deflator, which are health care services, portfolio management and domestic airfares," Deutsche Bank's Jim Reid said. "U.S. April producer price inflation is expected to be benign, with a slight slowing in the core rate. The problem is that this tells us less and less about consumer price inflation," UBS' Paul Donovan said. The PPI report comes ahead of the closely watched consumer price index data, that is slated to be released tomorrow. "The first three months of the year all had fairly strong inflation, and all beating expectations, so this is an important week," Reid added. Investors are also awaiting Powell's speech at 10:00 am ET today. "The FOMC probably needs to see a couple of (CPI) prints near 0.20% before it will press ahead with the first rate cut, so we doubt that markets will move this week to price-in a higher chance of rate cuts in Q3, unless the core CPI surprises substantially to the downside," Pantheon Macro added.
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