© Reuters.
Investing.com– U.S. stock index futures slipped lower Monday, extending the previous week’s declines while thus focus turns squarely to key upcoming inflation data.
By 06:30 ET (11:30 GMT), the contract was down 80 points, or 0.2%, traded 9 points, or 0.2%, lower and dropped 35 points, or 0.2%.
Profit-taking in the technology sector, especially in market darling NVIDIA Corporation (NASDAQ:), saw Wall Street indexes pull back sharply from record highs on Friday.
The blue chip slid 0.9% last week, marking its worst performance since October. The dipped 0.3%, while the dropped 1.2%.
A mixed employment report also factored into market caution, given that it showed grew more than expected in February, and came just after a series of somewhat hawkish signals on U.S. interest rates from the Federal Reserve.
These losses raised questions over whether a stellar rally through February was now running out of steam.
Gains in technology, amid hype over artificial intelligence, were the biggest drivers of Wall Street over the past month, especially as investors piled into Nvidia and other chipmakers.
But Nvidia’s losses on Friday raised questions over just how long this rally could run, especially amid persistent uncertainty over the path of U.S. interest rates.
CPI data awaited for more rate cut cues
With this in mind, the data, due on Tuesday, will be studied carefully for more cues on the path of U.S. interest rates and the economy.
The reading is expected to show some easing in inflation after outsized CPI readings for the past two months, although the annual is still expected to remain well above the Fed’s annual 2% target.
Fed Chair Jerome Powell, as well as several other central bank officials, had signaled last week that they were still seeking more signs that inflation was weakening, before the bank would consider cutting interest rates.
Market watchers will also be looking to Thursday’s retail sales data for February, which is expected to rebound 0.8% after falling the same amount a month earlier.
The economic calendar also features updates on industrial production, consumer sentiment and weekly data on initial jobless claims.
Oracle (NYSE:) due to report
The quarterly earnings season is slowing down, but software giant Oracle is set to report after the close.
Elsewhere, Choice Hotels International (NYSE:) stock rose premarket after the chain terminated its months-long takeover bid for rival Wyndham Hotels & Resorts (NYSE:), down 1.4%, after failing to gather enough support from the target’s shareholders.
Choice added that its board had authorized an increase of 5 million shares to its repurchase program.
Boeing (NYSE:) stock fell premarket after the Wall Street Journal reported that the U.S. Justice Department had opened a criminal investigation into a dangerous mid-air fuselage breach in January on one of the planemaker’s 737 Max jets operated by Alaska Airlines.
Oil drifts lower
Oil prices drifted lower Monday, continuing the previous week’s sharp losses with the markets on edge over slowing demand, particularly from China, the world’s largest importer of crude.
By 06:30 ET, the U.S. crude futures traded 0.4% lower at $77.71 a barrel, while the Brent contract dropped 0.4% to $81.76 a barrel.
Data released last week showed that China’s imports of rose in the first two months of the year compared with the same period in 2023, but they were weaker than the preceding months.
Additionally, gold futures fell 0.1% to $2,184.35/oz, while EUR/USD traded 0.1% higher at 1.0942.
(Ambar Warrick contributed to this article.)
