Following the previous session's decline in U.S. equities, S&P 500 and Nasdaq 100 futures got off to a firm start. With tonight's CPI and tomorrow's PPI releases ahead, interest-rate trends and earnings at major companies will be in focus.
The three major indexes extended their declines in the previous session in New York, with the Dow down about 184 points, while the S&P 500 and Nasdaq also widened their losses. Selling prevailed amid heightened tensions in the Middle East, rising crude oil prices and signs of weakness in the employment data.
In today's U.S. equity market, futures are trading firmly, with S&P 500 futures at 7,755.25, Nasdaq 100 futures at 29,694.75 and Dow futures slightly higher. Long-term Treasury yields are edging lower, which is likely to be viewed as a positive factor for stocks.
Among companies reporting earnings, Amkor, Alpha and Omega Semiconductor, and Cisco Systems are attracting attention, while demand related to AI investment is likely to be viewed as a potential catalyst. At the same time, investors are likely to remain cautious ahead of tonight's CPI release, including the core reading, with the PPI due tomorrow.
Overall, selling could resume depending on concerns over a prolonged Middle East crisis and interest-rate trends, although the market outlook could also shift depending on upcoming economic data.