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• US stock futures remained stable on Monday, with investors eyeing upcoming inflation data that could shape US monetary policy. Recent strong economic data has raised concerns about potential Federal Reserve tightening.
• Last week, the Dow fell 0.75%, the S&P 500 dropped 1.29%, and the Nasdaq Composite tumbled 1.93%, driven by fears of more aggressive rate hikes.
• Markets now assign a nearly 50% chance of a rate increase in November after an expected pause in September.
• Key events this week include consumer and producer inflation reports, retail sales, and consumer sentiment data releases.
• Major tech companies, Oracle and Adobe, will report earnings on Monday and Thursday, respectively.
• The dollar index retreated slightly from six-month highs as investors await crucial US inflation readings that could influence the future interest rate outlook.
• Recent data showing lower unemployment claims and an unexpected rise in the ISM Services PMI in August have heightened the rate hike debate.
   

Technical Perspective

The E-mini S&P 500 is currently approaching the swing highs on the daily interval, and these levels coincide with the upper value extreme for the current month. This suggests that the market has found support from buyers, particularly around the lower value extreme for the Quarter, which has contributed to a balanced trading pattern in the medium-term perspective.

From a yearly perspective, the market remains imbalanced to the upside and is trading above the developing value area. Buyers are currently active around the upper standard deviation of the VWAP, indicating a bullish sentiment.

It’s worth noting that positive volatility in the session may exert some pressure on the market.

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