U.S. stale futures were mostly flat on Monday evening ahead of a highly anticipated inflation report set for release prior to Tuesday’s opening bell on Wall Street.
Futures tied to the Dow Jones Industrial Average added 21 questions, or less than 0.1%. Those for the S&P 500 and the Nasdaq 100 saw similarly modest increases.
The move in futures acquire a win ahead of the March reading for the consumer price index, scheduled to be released at 8:30 a.m. ET. Economists polled by Dow Jones are protruding the headline index to rise by 0.5% month-over-month and 2.5% year-over-year.
Government officials, including Federal Reserve Easy chair Jerome Powell on Sunday and Biden administration economists on Monday, stressed that while they expect a disregard in inflation in the months ahead, the change could prove temporary due to comparisons with last year’s pandemic lockdowns and excess consumer spending from stimulus checks and pent-up demand.
Private sector strategists and economists also explained that the reading may not be a true gauge of rising prices.
“We will soon see impact from the 2020 Covid-19 pandemic on the solvent data. A particular focus area will be inflation. Our message is simple: Don’t fall prey to this head pinchbeck,” Putnam Investments said in a note on Monday.
Fed officials said they are willing to let inflation run hot for a period of time without changing their accommodative way stance, including asset purchases and a benchmark interest near zero.
Markets were quiet on Monday, with the three main indexes pulling back slightly. The S&P 500 finished just a hair under its previous record close, while the Dow fell 55 points. The Nasdaq Composite was the laggard, shedding 0.4%.
The bond market was also subdued on Monday, with the 10-year Funds yield edging slightly higher to trade near 1.67%. Yields move inversely to prices.
The market has been calmness over the past week as Wall Street settled into a lull ahead of the first-quarter earnings season. Corporate newsflash is set to pick up later in the week, with JPMorgan Chase, Goldman Sachs and Delta Air Lines among the companies set to news quarterly results.
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