U.S. Stock Futures Rise Ahead of Key Inflation Data

NEW YORK, U.S. — U.S. stock futures inched higher early Monday as traders prepared for key inflation reports this week. The Dow Jones Industrial Average futures rose by 100 points, or 0.2%, while S&P 500 futures advanced 0.1% and Nasdaq futures traded near the flatline.

Gains were moderated after a Financial Times report revealed that Nvidia and AMD agreed to share a portion of their revenue from certain chips sold in China with the U.S. government in exchange for export licenses. As a result, Nvidia’s shares dipped by around 1% in premarket trading, and AMD’s shares fell by 2%.

Last week, the Nasdaq Composite reached fresh closing highs, while the S&P 500 approached another milestone. A significant rally in Apple, which had lagged for much of the year, helped boost the market’s performance.

Jay Woods, chief global strategist at Freedom Capital Markets, shared his thoughts on the market’s current state: “We are probably going to be more in a digestion phase than anything else. We may get a little bit of sideways action in this market, which is not a bad thing.” Investors are now questioning how the stock market can continue to rise amid high valuations and a challenging economic outlook.

This week’s inflation readings will be crucial for the market, especially with the Consumer Price Index (CPI) set to be released on Tuesday and the Producer Price Index (PPI) on Thursday. Hot inflation readings could hinder market momentum, with Woods emphasizing the importance of the upcoming CPI data stating, “That will definitely dictate monetary policy.”

Another significant factor this week is the U.S.-China trade situation, with the deadline for a deal approaching. Many companies exposed to recent tariff changes saw declines in their shares last week. Analysts warned of increased price pressures as tariffs continue to push up goods prices.

The stock market’s outlook remains uncertain as traders gear up for the release of economic data and earnings reports from major companies.