Investors Await Key Inflation Data Amidst Signs of Economic Cooling

U.S. stock index futures showed little movement on Sunday evening, as investors exercised caution ahead of significant inflation data scheduled for later in the week, which is expected to influence interest rate outlooks. Last Friday, U.S. stock futures trended upward, indicating a continuation of the previous session's gains on Wall Street.

Recent indications of a cooling U.S. economy added to market concerns, with May's consumer sentiment hitting a six-month low while inflation expectations rose.

The Dow Jones Industrial Average extended its positive streak on last Thursday, spurred by better-than-expected weekly U.S. jobless claims, hinting at a potential slowdown in the American labor market and fueling speculation that the Federal Reserve might lower interest rates from their more than two-decade high as early as September.

Despite concerns about inflation and interest rates, Wall Street indexes have seen three consecutive weeks of gains, supported by strong earnings reports and expectations of future rate cuts. The Dow closed at its highest level since April 1, with the S&P 500 and Nasdaq Composite also posting gains.

In specific stocks, Arm Holdings and Roblox faced declines due to weaker-than-expected outlooks. Looking ahead, U.S. producer and consumer price data will be closely watched this week, potentially influencing market direction in this period. Additionally, retail sales data and earnings reports from major retailers such as Walmart and Home Depot will provide insights into consumer spending trends, a crucial economic driver. Analysts expect Wednesday's CPI report to reveal a year-over-year increase in underlying inflation, but a higher-than-expected reading could eliminate prospects for rate cuts, leading to increased market volatility.

Data for Technical Analysis (1H) CFD US30 DJIA

Resistance : 39537.6, 39543.9, 39554.3

Support : 39516.8, 39510.5, 39500.1                      

1H Outlook

Source: TradingView                     

Buy/Long 1 If the support at the price range 39481.8 - 39516.8 is touched, but the support at 39516.8 cannot be broken, the TP may be set around 39539.9 and the SL around 39464.0, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 39537.6 - 39572.6, TP may be set around 39580.0 and SL around 39499.0, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 39537.6 - 39572.6 is touched, but the resistance at 39537.6 cannot be broken, the TP may be set around 39512.8 and the SL around 39589.0, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 39481.8 - 39516.8, TP may be set around 39460.0 and SL around 39554.0, or up to the risk appetite.       

Pivot Points May 13, 2024 06:24AM GMT