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Stock futures inch higher after S&P, Nasdaq fall to start the week

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U.S. stock futures rose Monday night after major averages traded between gains and losses in regular trading. This is as the market waits for key inflation data later this month.

Futures contracts linked to the Dow Jones Industrial Average gained 0.1%. S&P 500 futures gained 0.16%, while Nasdaq 100 futures were up 0.24%.

regular trading the S&P 500 slid 0.37%, while the Nasdaq Composite shed 0.58%. Both indexes traded higher early in the day before falling to a halt during the last hour of trading. However, each index closed above its lowest level for the session.

Only 1 point was gained by the Dow Jones Industrial at Monday’s close of trading. The benchmark 30-stock index had risen 235 points at one time. The Dow dropped by 95 points at the lowest point of the day.

Edward Moya, Oanda’s director of research said that U.S. stocks would struggle to find direction until there is an inflation shift in the market. This will set expectations about how tightening the Fed into what’s still considered an overvalued stockmarket.

The Labor Department will publish January’s Consumer Price Index data on Thursday. The reading follows a stronger-than-expected January jobs report, which has led to speculation that the Federal Reserve could be more aggressive when it comes to hiking rates. For a 7.2% increase in prices over one year, the inflation data should show that they rose by 0.4% in Jan.

Bank of America stated Monday that Federal Reserve could be implemented seven quarter-percentage-point rate hikes this year.

Canaccord Genuity Monday said in a note sent to clients that “the tumultuous markets continue as the combination Fed policy uncertainty, economic transition remain in focus”

“Unfortunately this is where we will be for some time as the economic and monetary mid-cycle transition unfolds.”

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Communications services was the worst-performing S&P 500 sector on Monday, declining 2.2% amid a 5% dip for shares of Facebook-parent Meta. The disappointing earnings report by the company has caused shares to plummet 28% in the month of March.

Google-parent Alphabet lost 2.9% while Twitter and Match Group all fell around 2%.

Moya, Oanda’s director of technology stocks, said that “technology stocks no longer are a one-way deal as investors cut losses, now focus on valuations and competition and long-term outlooks.”

Earnings season is continuing Tuesday. Pfizer continues to be among the top names posting quarterly results.

As of Monday afternoon, 281 S&P 500 components have reported, with 78% exceeding earnings estimates and 77% topping revenue expectations, according to FactSet.

Peloton also will release earnings after the markets close on Tuesday. It’s been an extremely turbulent period for the stock. Stock surgedFollowing reports that the company might be a target for a takeover, 20.9% was recorded on Monday

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