Investing.com– U.S. stock index futures were steady on Sunday night after Wall Street fell on warmer-than-expected payrolls data, with the focus on earnings at several major banks and key inflation data due this week.
Investors are now looking ahead to the fourth-quarter earnings season, which is set to begin in earnest this week with statements from several major Wall Street banks. Closely watched CPI inflation data is also available this week and is likely to weigh on the outlook for interest rates.
they were unchanged at 5.8.50 points, while settling at 21,023.50 points by 18:35 ET (23:35 GMT). increased by 0.2% to 42,227.0 points.
The bank’s earnings are expected this week
A number of major banks are set to report fourth-quarter results this week, with JPMorgan Chase & Co (NYSE: Wells Fargo & Company (NYSE:), Goldman Sachs Group Inc (NYSE:), Citigroup Inc (NYSE: ) and Bank of New York Mellon (NYSE: ) due Wednesday.
Bank of America Corp (NYSE: ) and Morgan Stanley (NYSE: ) will report Thursday, as will major insurer Unitedhealth Group (NYSE: ) .
The focus will be squarely on whether the strength of the US economy translated into strong corporate earnings in the final quarter of 2024, even as inflation remained flat and interest rates relatively high.
This week’s earnings should also define the next phase of the move for Wall Street, as a combination of exchange rate jitters and profit-taking at high valuations has also hit U.S. stocks over the past month.
Wall Street affected by exchange rate jitters; inflation was expected
Wall Street indexes posted heavy losses since Friday, as warmer-than-expected heat fueled growing belief that rates will slowly fall this year.
While the Fed cut rates by a total of 100 basis points in 2024, the central bank has signaled a much slower round of rate cuts this year, citing concerns about volatile inflation and a strong labor market.
This week the focus is on key inflation data for December, due out on Wednesday. Any signs of sticky inflation are expected to boost the Fed’s prospects for slower rate cuts.
The central bank has also recently expressed concern about expansionary and protectionist policies under President-elect Donald Trump, which could support inflation and interest rates in the long run.
Trump is scheduled to take office next week.
On Friday, it fell 1.5% to 5827.0 points, while it fell 1.6% to 19161.63 points. The drop is 1.6% to 41,938.45 points.
