Stock futures fell on Monday night after a sleepy day of trading. As investors await key inflation data releases later in the week.
Futures tied to the Dow Jones Industrial Average were down 0.1%. S&P 500 futures and Nasdaq 100 futures also fell 0.1% each.
In regular trading on Monday, the three major averages ended slightly higher. The Dow ended the day up about 16 points, or less than 0.1%, after jumping more than 300 points earlier in the day. The S&P 500 added 0.3%, and the high-tech Nasdaq Composite advanced 0.4%.
The indices returned most of their gains earlier in the day. As the 10-year Treasury yield soared as much as 3% and hit its highest level in nearly a month.
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The sentiment was largely subdued on Monday, with no releases of U.S. economic data. And a quiet Federal Reserve in its blackout period. There were also no earnings reports for major companies.
Investors are still assessing whether the recent rebound in stocks is a bear market rally. Whether the market has bottomed out since this year’s sell-off.
Mr. Ed Yardeni (President of Yardeni Research) said that “since the beginning of the year we’ve been looking at altitude sickness when you look at the multiple valuations,”. He spoke on CNBC’s “Closing Bell: Overtime.”
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“To a large extent, clearly, with the benefit of hindsight, the market was overvalued,” he said. “A lot of that was in the negative cover seat, big-cap names, and related companies. I think we’ve seen tremendous correction in that area. And now the question is whether the market can accept the kind of earnings expectations. That analysts are delivering and whether those expectations will be correct.”
Investors are still following what is a lighter week in the company’s earnings. Investors schedule J.M. Smucker, United Natural Foods, and Cracker Barrel to report before the bell Tuesday.
In economic data, the reading of the Consumer Price Index for May is the most important one. That investors are focusing on, which will come out on Friday. If the reading is cooler than April’s numbers, as expected, some might interpret it as a sign that inflation has peaked.
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