US stock futures flat as Wall St treads water before inflation, earnings

Investing.com-- U.S. stock index futures moved little in evening deals on Monday, tracking a muted close on Wall Street as anticipation of key inflation data and the beginning of the quarterly earnings season dissuaded big trades. 

Stock markets were still reeling from a blowout nonfarm payrolls report on Friday, which saw traders further scale back bets that the Federal Reserve will cut interest rates in June. 

A spike in Treasury yields- with the 10-year rate hitting a four-month high- also pressured stocks, amid growing fears over higher-for-longer interest rates. 

S&P 500 Futures rose 0.08% to 5,257.50 points, while Nasdaq 100 Futures rose 0.1% to 18,314.00 points by 19:12 ET (23:12 GMT). Dow Jones Futures rose 0.05% to 39,239.0 points. 

CPI inflation, Fed minutes awaited for more rate cues 

Futures moved little following a muted session on Wall Street, as investors awaited more cues on the path of U.S. interest rates. 

The S&P 500 closed at 5,202.39 points on Monday, while the NASDAQ Composite ended nearly unchanged at 16,253.95 points. The Dow Jones Industrial Average finished at 38,892.80 points.

Consumer price index inflation data for March was Wall Street’s biggest point of focus this week. The reading is due on Wednesday and is expected to show inflation potentially picking up and remaining squarely above the Fed’s 2% annual target.

Sticky inflation has been a major point of contention for the Fed in potentially lowering interest rates. A string of officials warned that high inflation will delay any rate cuts this year.

More commentary from the Fed is also on tap this week, with the minutes of the Fed’s March meeting due later on Thursday. The central bank has so far provided scant cues on the timing and scope of any interest rate cuts this year. 

Traders were seen largely pricing out expectations that the Fed will cut interest rates by as soon as June. The CME Fedwatch tool shows a 54% chance for a 25 basis point cut in June. 

Wall St banks to kick off Q1 earnings season 

Anticipation of the first quarter earnings season also kept Wall Street on edge.

Major U.S. banks are set to kick off the first-quarter earnings season this week, with JPMorgan Chase&Co (NYSE:JPM), Citigroup Inc (NYSE:C) and Wells Fargo &Company (NYSE:WFC) set to report earnings on Friday.

Delta Air Lines Inc (NYSE:DAL) and BlackRock Inc (NYSE:BLK) are also set to provide quarterly reports this week. 

Investors will be watching to see whether Wall Street majors can justify a massive run-up in valuations seen over the past three months.