US stock futures steady as inflation data looms

Investing.com-- U.S. stock index futures were rangebound in evening deals on Sunday as Wall Street saw some stability after wild swings last week, with focus turning to key inflation data due this week. 

Wall Street indexes initially logged steep losses last week, but ended the week mostly flat on a mix of bargain buying and some easing fears of a recession. Persistent bets on interest rate cuts also aided stock markets. 

S&P 500 Futures fell 0.1% to 5,365.75 points, while Nasdaq 100 Futures fell 0.1% to 18,602.25 points by 19:21 ET (23:21 GMT). Dow Jones Futures fell 0.1% to 39,603.0 points. 

CPI data awaited for more cues 

Focus this week is squarely on consumer price index inflation data, due on Wednesday, for more cues on the economy and cooling inflation. 

The reading is expected to have cooled slightly in July from the prior month- a trend that is likely to ramp up optimism over lower interest rates.

Investors are split over a 25 basis point or 50 basis point cut in September, according to CME Fedwatch. But the Federal Reserve is widely expected to begin cutting rates then, amid growing signs of a cooling U.S. economy. 

The Fed recently signaled that any more encouraging economic data will set the stage for a September rate cut, and that it did not need to see inflation reaching its 2% annual target to begin trimming rates.

Wall St recoups last week's losses

Wall Street indexes closed mildly higher on Friday and retained some of their rebound from last week’s lows.

A rout in technology stocks and fears of a U.S. recession saw U.S. stock indexes log steep losses last week, with the Nasdaq entering correction territory from recent peaks. 

But bargain buying into heavyweight tech stocks, coupled with the notion that fears of a U.S. recession may be overblown, helped Wall Street recoup most losses, U.S. stock benchmarks ending the week flat. 

The S&P 500 rose 0.5% on Friday to 5,344.16 points, while the NASDAQ Composite rose 0.5% to 16,745.30 points. The Dow Jones Industrial Average rose 0.1% to 39,497.54 points.

Beyond Wednesday’s inflation data, some earnings are also on tap this week, although the second quarter earnings season has now mostly wound down. Home Depot Inc (NYSE:HD) and Cisco Systems Inc (NASDAQ:CSCO) are set to report in the coming days.