US stock futures indicated a flat opening for Wall Street on Tuesday as investors awaited the release of crucial inflation data. The report will be closely scrutinized for clues regarding the Federal Reserve’s potential interest rate decision later this month. Market participants are anticipating a rate cut, and the inflation numbers will likely play a significant role in confirming or challenging these expectations.
Contracts tied to the S&P 500 and Nasdaq 100 edged up slightly by approximately 0.1%. This subtle movement suggests a cautious approach from investors as they await the forthcoming economic data. The premarket trading saw notable activity, particularly with Oracle Corp. The software giant experienced a decline of up to 8.8% following the release of its quarterly earnings report, which fell short of market expectations. The underwhelming performance raised concerns about the growth trajectory of Oracle’s cloud computing division.
Meanwhile, Nvidia Corp., a leading AI chip manufacturer, faced potential further losses after reports emerged of a Chinese antitrust probe. The investigation into alleged anti-monopoly violations added to the headwinds faced by the company. In contrast to the broader market trend, US-listed Chinese stocks retreated from gains achieved on the previous day. This reversal followed Beijing’s announcement of plans to implement looser monetary policies. The initial positive reaction to the announcement appeared to be short-lived, as investors reassessed the potential implications for these companies. The confluence of these events, including the impending inflation report, corporate earnings news, and regulatory scrutiny, contributed to a sense of cautious anticipation in the market. The inflation data will likely provide further clarity on the economic outlook and influence investor sentiment in the coming days.
