Stock Futures Rise as Traders Eye Key Inflation Data

U.S. stock futures rose Monday night, kicking off a holiday-shortened trading week as investors looked toward key inflation reports due later in the week. The Dow Jones Industrial Average futures climbed by 166 points, or 0.4%, while S&P 500 futures gained 0.4%, and Nasdaq-100 futures rose 0.6% as regular trading on the New York Stock Exchange (NYSE) and Nasdaq was halted for the Martin Luther King Jr Day holiday.



The market is coming off a winning week for the major averages. The Dow Jones Industrial Average gained roughly 0.6% last week, while the S&P 500 advanced 1.5%. The Nasdaq Composite rose 2.6% as investors scanned for a catalyst for the next leg higher. Despite ongoing concerns around trade and inflation, a look at the major averages shows that they are not too far off their recent highs, with the 30-stock Dow and the Nasdaq about 1% off their recent records, while the S&P 500 is just 0.2% off its own milestone.

Investors are anticipating a wave of executive orders from Trump 2.0 that could significantly affect the economy. A key order anticipated from the Trump administration will likely avoid imposing tariffs immediately but will focus on starting probes into what Trump has called unfair trade practices by China, Canada, and Mexico, as well as scrutinizing currency policies. European equity markets advanced on the news, with the pan-European STOXX 600 index advancing 0.3% and major European indices rising by about 0.5%. The U.S. dollar weakened on Monday, plunging to the day's low of 1.3% so far, with particularly sharp losses against the Canadian dollar, Mexican peso, euro, and Chinese yuan.



Traders will be watching for the latest data from the producer price index, which measures wholesale inflation, due out on Thursday. They'll also monitor weekly jobless claims data due out in the morning. Earnings season continues, with Airbnb, Coinbase, and Palo Alto Networks among the companies expected to report after Thursday's closing bell. Of the more than 69% of S&P 500-listed firms that have already posted results, nearly 77% have surpassed Wall Street expectations, according to FactSet.



In conclusion, U.S. stock futures rose Monday night, kicking off a holiday-shortened trading week as investors looked toward key inflation reports due later in the week. The market's resilience and the positive sentiment among investors reflect the anticipation of key economic data and the potential impact of executive orders from the Trump administration. Traders will be closely watching the producer price index and weekly jobless claims data, as well as the earnings reports from companies like Airbnb, Coinbase, and Palo Alto Networks. Despite ongoing concerns around trade and inflation, the market remains resilient, with the major averages not too far off their recent highs.