Traders work the floor of the New York Stock Exchange (NYSE) on September 6, 2022.
Brendan McDermid | Portal
US stock futures fell on Sunday as investors looked ahead to a week of midterm congressional elections and the latest consumer inflation report.
Dow Jones Industrial Average futures fell 187 points, or 0.6%. S&P 500 and Nasdaq 100 futures fell 0.7% and 0.8%, respectively.
These moves follow Friday’s rally, when the Dow Jones Industrial Average gained nearly 402 points, or 1.3%. The S&P 500 was up 1.36% and the Nasdaq Composite was up 1.28%. Still, the major averages ended the week with losses. The Dow ended a four-week winning streak on rate hike fears.
Tuesday’s midterm elections will determine which party will control Congress and influence the direction of future spending. Democrats currently control the House of Representatives and have a majority in the Senate. A Republican sweep could signal greater support for oil and gas companies.
On the economic front, investors are expecting Thursday’s CPI report to provide further insight into the Federal Reserve’s efforts to rein in inflation. A hot inflation report could signal investors that a reversal from higher interest rates may be further away than expected for a longer period of time.
“[In] For equity and bond markets to match the post-peak inflation trajectories shown in the table, inflation must continue to fall – and at a faster rate than we have seen so far. Until the Fed signals that pivot is near, things may remain challenging,” Baird’s Ross Mayfield wrote in a recent statement.
Elsewhere, several companies are expected to report Monday, including Palantir Technologies, Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is drawing to a close and the majority of companies in the S&P 500 have reported their results.