U.S. futures mixed amid focus on earnings, inflation
BNN Bloomberg
(Bloomberg) -- US equity-index futures slipped as investors bet a strong earnings performance can continue despite recent disappointments. The dollar extended a decline.
Contracts on the Nasdaq 100 fell 0.4% following losses on the underlying gauge driven by NVidia Corp.’s revenue miss. Those on the S&P 500 were also in the red. Treasuries dipped, with the 10-year benchmark yield rising three basis points as traders await Wednesday’s inflation report to gauge the path of Federal Reserve tightening.
Focus is turning to the question of whether US consumer-price index may have peaked in June as economists project the biggest drop in more than two years for July. A blowout reading for nonfarm payrolls has eased worries about a recession, while corporate performance remains stellar. About 81% of S&P 500 companies that have reported results so far have beaten or met expectations.
“Until inflation abates and the Federal Reserve rebalances its priorities away from inflation and toward growth, tempting rallies are likely to remain unsustainable,” Seema Shah, chief strategist at Principal Global Investors, wrote in a note to clients.
