US stock futures flat as Wall St cools amid anxiety over rates, inflation

Investing.com-- U.S. stock index futures were muted in evening deals on Monday, after Wall Street indexes were pulled off record peaks by a mix of profit-taking and growing anxiety ahead of key inflation readings this week. 

Investors were also largely on edge over the prospect of higher-for-longer interest rates, as a slew of Federal Reserve officials signaled that the central bank was in no hurry to begin loosening policy. 

This notion saw all three Wall Street indexes hit with profit-taking over the past two sessions, after stellar results from market darling NVIDIA Corporation (NASDAQ:NVDA) drove stocks to record highs. 

S&P 500 Futures were flat at 5,080.75 points, while Nasdaq 100 Futures fell slightly to 17,970.0 points by 18:46 ET (23:46 GMT). Dow Jones Futures steadied at 39,116.00 points. 

Econ data deluge keeps Wall St on edge

Focus this week was largely on PCE price index data- the Fed’s preferred inflation gauge, which is due on Thursday. Any signs of sticky inflation are likely to give the central bank more impetus to keep rates higher for longer- a notion that dented risk appetite in recent sessions. 

The S&P 500 fell 0.4% to 5,069.53 points on Monday, while the NASDAQ Composite fell 0.1% to 15,976.25 points. The Dow Jones Industrial Average lost 0.2% and ended at 39,069.23 points. 

But before the inflation data, markets will also have to contend with a slew of key readings on the U.S. economy this week. Data on core durable goods orders, house prices, and an assortment of state economic activity readings are due in the coming days.

A revised reading on fourth-quarter gross domestic product is also due this week, and is expected to show some cooling in the U.S. economy, although not to the extent that the Fed will be compelled into cutting rates early. 

Several more Fed officials are also set to speak this week, after their peers largely downplayed expectations of early rate cuts by the central bank in 2024. Traders were seen pricing out expectations for cuts in May and June, according to the CME Fedwatch tool.

Q4 earnings season winds down with mixed showings 

The fourth-quarter corporate earnings season was now coming to a close, with a series of somewhat mixed showings.
Video conferencing firm Zoom Video Communications Inc (NASDAQ:ZM) rose 12% aftermarket after clocking stronger-than-expected earnings, while also announcing a $1.5 billion share buyback. 

But on the other hand, Unity Software Inc (NYSE:U) sank nearly 19% after the firm said it was exiting some businesses, even as its earnings topped estimates.

Workday Inc (NASDAQ:WDAY) sank 8% after it forecast subscription sales below expectations, while CarGurus (NASDAQ:CARG) slid nearly 12% after also posting weak guidance.

A slew of retailers- including Lowe’s Companies (NYSE:LOW), Macy’s (NYSE:M), TJX Companies (NYSE:TJX) and Best Buy (NYSE:BBY) are also set to release quarterly earnings this week.