US stock futures were slightly lower on Sunday evening ahead of a week with several events expected in the ongoing fight against inflation.
Dow Jones Industrial Average futures fell 50 points, or about 0.2%. Those of the S&P 500 and Nasdaq 100 were 0.2% and 0.3%, respectively.
The move in futures comes as investors will be focused on inflation this week. On Tuesday November’s Consumer Price Index will be released and traders will be looking for a sign that inflation is easing.
The Federal Reserve has a two-day meeting beginning the same day. The central bank is expected to announce another rate hike on Wednesday, although traders anticipate a smaller move than in recent months.
In addition to the expected rate hike, the Fed’s updated economic projections and Chairman Jerome Powell’s press conference could be key signals for what the central bank wants to do in the months ahead.
“Financial conditions have eased significantly since the October CPI reading released last month, so the Fed will likely use the December FOMC meeting to cycle those bins.k. …We think the markets are too optimistic on rates after the first quarter and we expect Powell to take a more hawkish tone and the dots point to higher rates for a longer period than what is currently assessed by the markets. futures markets,” said Cliff Hodge, Chief Investment Officer of Cornerstone Wealth.
Wall Street is emerging from a turbulent week that has seen it all three major averages are losing ground. The Dow Jones fell 2.77% for its worst week since September. The S&P 500 fell 3.37%, while the Nasdaq Composite lost 3.99%.