Stock futures rose on Monday morning, following the S&P 500’s third straight weekly gain, as investors focused on a key inflation report this week.
Dow Jones Industrial Average futures gained 139 points or 0.4%. S&P 500 and Nasdaq 100 futures advanced 0.5% and 0.6%, respectively.
Monday’s gain follows a weekly gain for the S&P 500 and Nasdaq Composite as a surprisingly strong monthly report eased some recession fears. The resilient labor market also signaled that the economy could withstand more rate hikes from the Federal Reserve.
“The stock market’s rally from the June 16 low appears to have legs in our view based on the economic data and earnings results reported through last Friday,” said Oppenheimer chief investment strategist John Stoltzfus, in a note to clients.
Some clean energy-related stocks gained after the Senate passed a $430 billion climate bill, the Inflation Reduction Act, which is expected to pass the House later this year week The Invesco Solar ETF rose 1.7% in early trade.
A new consumer price index reading due on Wednesday will give investors more clarity on the central bank’s next move at its September policy meeting. Traders are now pricing in a higher probability of a 0.75 percentage point increase next month, which would be the third consecutive increase of this magnitude.
According to Dow Jones estimates, the global CPI, which includes energy and food, is expected to fall to 8.7% in July, from a 40-year high of 9.1% in June.