Futures ease as focus turns to inflation data

© Reuters. FILE PHOTO: A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 7, 2024. REUTERS/Brendan McDermid

By Bansari Mayur Kamdar and Shashwat Chauhan

(Reuters) -U.S. stock index futures were marginally lower on Monday, as investors awaited key inflation data this week that could provide more cues on the Federal Reserve’s monetary policy path following last week’s mixed jobs report.

All three major U.S. stock indexes ended the week lower on Friday, with the S&P 500 and Nasdaq coming off record highs as high-flying chip stocks fell and a labor market report showed more new jobs than expected, while the unemployment rate rose unexpectedly.

The mixed report bolstered bets of the Fed cutting interest rates in June. Friday’s data even prompted some traders to bet on a May rate cut.

“We believe the Fed will be inclined to see the employment release as evidence that the jobs market is becoming less overheated,” Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a morning note.

This week’s February data, including consumer prices (CPI), will offer more clues on whether inflation has eased enough for policymakers to lower borrowing costs in the coming months.

Sticky inflation data for January and signs of a robust economy halted the AI-led rally last month, leading traders to push back bets of the first interest rate cut to June from March.

Federal Reserve officials are in a media blackout ahead of their latest rate-setting meeting next week.

At 7:00 a.m. ET, Dow e-minis were down 101 points, or 0.26%, S&P 500 e-minis were down 5.75 points, or 0.11% and Nasdaq 100 e-minis were down 16.75 points, or 0.09%.

AI-darling Nvidia (NASDAQ:NVDA) struggled for direction in premarket trading after a 5.5% drop on Friday, as chip stocks lost some momentum.

Boeing (NYSE:BA) eased 0.9% after Alaska Airlines said on Saturday it was cooperating with the U.S. Department of Justice in a criminal investigation into a Boeing 737 MAX blowout on one of its flight in January.

Cryptocurrency and blockchain-related firms, including Coinbase (NASDAQ:COIN) Global, Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), climbed between 4.5% and 5.9% as bitcoin hit a fresh record high.

Equitrans Midstream (NYSE:ETRN) jumped 9.2% after EQT Corp (NYSE:EQT) said on Monday it had decided to buy back its former unit in an all-stock deal.

EQT (ST:EQTAB) shares were down 2.2%.

Drugmaker Eli Lilly (NYSE:LLY) fell 1.4% after shedding 2.3% in the previous session.

The 2024 U.S. presidential election is also coming into focus, with investors bracing for a likely rematch between President Joe Biden and former President Donald Trump.