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Investing.com — U.S. stock index futures were little moved in Sunday night trading as Wall Street's recent rally cooled on expectations for further clues on inflation and the Federal Reserve later this week. There wasn't.
It stabilized at 5,291.50 points, but was flat at 18,572.75 points by 19:29 ET (23:29 GMT). It fell 0.1% to 39,835.00 points.
Wall Street faces consolidation after strong rally
Wall Street indexes soared to record highs last week after the Federal Reserve signaled at least three interest rate cuts this year, but persistent hype around artificial intelligence also dampened investors, especially NVIDIA Corporation (NASDAQ 🙂 and other large technology stocks.
But that rally subsided on Friday, with analysts now warning of short-term consolidation on Wall Street as traders booked profits on a record rally through 2024. ing.
It fell 0.1% to 5,234.18 points on Friday. It rose 0.2% to 16,428.82 points, driven mainly by Nvidia, but ended Friday with a 0.8% decline at 39,475.90 points.
All three indexes are still on track to hit new highs set last week, with gains of between 4% and 10% through the first quarter of 2024. Quarter-end position changes could also add to Wall Street's weakness.
Expectations for further inflation data and signals from the Federal Reserve also kept markets on edge.
This week: PCE inflation, Fed speakers appear
The data, the Fed's preferred measure of inflation, is expected to be released this Friday. Markets were wary of this outlook, as the Fed recently reiterated its position that inflation would be the path to rate cuts in 2024.
Although U.S. inflation has fallen sharply over the past year due to high interest rates, it remains well above the Fed's annual target of 2%, a trend that remains a major point of contention for the Fed.
A number of Fed officials are scheduled to speak again this week, along with rate-setting committee members, each scheduled to speak on Monday and Friday.
He, who struck a somewhat dovish tone at last week's Fed meeting, is also scheduled to speak later this week.
