Currently, single-stock futures are waiting to see what the Fed’s next move is. They crawled up slightly on Sunday while in anticipation of the next Fed meeting. There, they should announce what their policies will be going forward.
Hot futures in the Dow Jones Industrial Average went up by 0.1%, or 32 points. When it comes to the NASDAQ and S&P 500, the results were similar. They both climbed up by 0.1%. Such indices had performed poorly towards the end of last week, being in the negative. This meant they had suffered losses for two weeks in a row.
Traders therefore are expecting the Fed to keep at the current interest rates. If so, the markets should be stable. However, they will still have to keep an eye on inflation rates just in case. The policy of the Fed on inflation will be crucial to know about when analysing changing futures.
While traders are expecting rates to continue as they are, they have to keep a close eye on the Fed’s tone. Whether they perceive a dovish or hawkish element in the policy could have big implications.
Inflation Data and Implications for Single-Stock Futures
Analysts have seen that the data for inflation that came out recently is just what they expected. The PPI is, indeed, higher than they thought they would see. However, the core PPI for vital products, like energy and food, was exactly where they thought it would be. These are more vital elements for overall inflation indicators for an economy. However, we should note that that core CPI was not quite where they were expecting. They believed they would see 0.2%, but the reality was at 0.3%. This is only a slight increase, so not too worrisome. So the future will show how single-stock futures will move in the coming weeks.