Following yesterday's modest gains, stocks are poised to decline in early trading today. Futures for the S&P 500 are currently indicating a lower market open, down by 0.3 percent.
Investors might be opting to capitalize on the minor gains recorded yesterday, which propelled both the Nasdaq and the S&P 500 to new all-time highs. However, overall trading activity is expected to remain subdued as market participants anticipate significant economic reports scheduled for release on Wednesday.
Leading the early action on Wednesday will be the Labor Department’s highly anticipated report on consumer price inflation for May. Economists predict a 0.1 percent rise in consumer prices for the month, following a 0.3 percent increase in April. Core consumer prices, which exclude the volatile food and energy sectors, are forecasted to climb by 0.3 percent for the second consecutive month.
The annual growth rate for consumer prices is expected to remain steady at 3.4 percent, while the core consumer price growth is projected to decelerate to 3.5 percent in May from April's 3.6 percent. These figures could significantly influence interest rate expectations ahead of the Federal Reserve's policy announcement later in the day.
Although the Federal Reserve is widely anticipated to maintain current interest rates, traders will closely scrutinize the accompanying statement and the latest economic and interest rate projections from Fed officials.
After a lackluster performance last Thursday and Friday, Monday's trading showed a lack of clear direction. The major indices wavered around the baseline before ending the session with modest gains. The Nasdaq advanced by 59.40 points or 0.4 percent to close at 17,192.53, the S&P 500 increased by 13.80 points or 0.3 percent to 5,360.79, and the Dow edged up by 69.05 points or 0.2 percent to finish at 38,868.04.
In international markets, the Asia-Pacific region exhibited mixed results on Tuesday. Japan’s Nikkei 225 Index rose by 0.3 percent, while China’s Shanghai Composite Index declined by 0.8 percent.
Meanwhile, major European markets saw declines today. The French CAC 40 Index fell by 1.2 percent, the U.K.'s FTSE 100 Index decreased by 0.9 percent, and Germany’s DAX Index dropped by 0.8 percent.
In commodities, crude oil futures are down $0.30 to $77.44 per barrel following a significant rise of $2.21 to $77.74 per barrel on Monday. Gold futures, which edged up $2 to $2,327 an ounce in the previous session, are now climbing by $4.90 to $2,331.90 an ounce.
On the currency front, the U.S. dollar is trading at 156.90 yen, slightly lower than the 157.04 yen at the close of New York trading on Monday. Against the euro, the dollar stands at $1.0730, down from $1.0765 the previous day.
