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Stock futures little changed ahead of key inflation data: Live updates
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Stock futures little changed ahead of key inflation data: Live updates

A trader works on the trading floor of the New York Stock Exchange.

NYSE

U.S. stock futures fell on Sunday evening as investors prepared for key inflation data after almost completely reversing their sharp market decline last week.

Dow-linked futures The Jones Industrial Average fell 48 points, or 0.1%. S&P 500 futures fell by 0.08% and Nasdaq 100 Futures fell slightly by 0.05%.

On Friday, all major averages rose to end the week, but stopped just short of a full recovery. Dow ended the week down 0.6%, while the S&P500 ended with a loss of only 0.04% and the technology-heavy Nasdaq-Composite closed with a loss of 0.18%.

“Emotions are running high and market swings tend to pile up, so I wouldn’t be shocked if there was another week of turbulence,” Callie Cox, chief market strategist at Ritholtz Wealth Management, told CNBC. “People are starting to prepare for a recession even though there hasn’t been a crisis yet. Fear often works in favor of us as stock market investors. Further relief rallies seem possible if economic data holds up, and interest rate-sensitive sectors could continue to drive the market higher.”

Investors will be hoping to get a better sense of the state of the economy this week after recent fears of a slowdown in the labor market spooked traders and rattled the market. On Tuesday, they will watch the producer price index for July, followed by the consumer price index on Wednesday for further confirmation that price growth has continued to stabilize. Retail sales for July will also be released on Thursday.

“Another round of good (inflation) data could calm fears that the Fed may be losing its way,” Cox said. “Investors have jumped to conclusions about the economy and will now analyze a new set of data to assess how justified this sell-off really is.”

“Retail sales and profits may show that fears about a slowdown in the labor market are overblown,” she added. “We haven’t seen too many alarming details about the U.S. consumer so far, so it’s important to consider the totality of the consumption data rather than panicking over a lukewarm jobs report.”

Home Depot will announce its results on Tuesday before the market opens, Walmart on Thursday.

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