Image Source: Pexels
 

The US stock markets are displaying rotational tendencies within a tight price range as investors wait for the crucial inflation data, which is due an hour before the New York trading opening. The data will offer valuable insights into the potential steps the Federal Reserve could take on its monetary policy path.

The S&P 500 Futures are trading slightly lower by around 0.1%, hovering around $4130. The Nasdaq fell by approximately 0.2% to 13234 points, and the Dow Jones is trading around 33603, down 0.1%.

Airbnb and Twilio experienced a 10% drop in after-hours trading due to weak forecasts. However, Rivian rose by approximately 6% because of a lower-than-expected loss.

Debt ceiling negotiations have not progressed much after a meeting between President Joe Biden and congressional leaders. This is another pressure factor for the stocks.

Inflation is expected to be around 5%, with a monthly forecast of approximately 0.4%. A higher print might lead the market to fall, while a lower print could cause equities to soar above the highs. A longer halt in the interest rate hike path might be concluded with a higher inflation print while a lower-than-expected could narrow the date for potential cuts and easing of the tightening cycle.

On Wednesday, Disney, Roblox, and Robinhood are set to report earnings.

1 Week Ago

Looking at the TPO profile of the SPX Futures, we can observe a slightly balanced price structure with a stronger lower distribution and a single print that could be revisited for possible selling. The market has auctioned below the prior lows, giving the market a bearish nuance for the session as the current p-shaped price structure. However, depending on the inflation report, the market could shake positions in both directions before the report.

The session’s calculations are mixed, as market direction remains uncertain while investors anticipate the upcoming inflation report. Additionally, gold and crude oil prices are trading lower by 0.4% and 1.5%, respectively. While the dollar trades little changed, a positive VIX volatility may favor some sellers. The market appears to be in a balanced state, with no clear directional bias until the release of the key inflation data.

More By This Author:

U.S. Dollar Index Climbs In NY Trading Session Ahead Of Inflation Report
US Stock Market Pressured As Investors Await Inflation Report
German Industrial Production Unexpectedly Drops In March