Wall Street futures point to a modestly higher open on Monday, with S&P 500 (SPX) futures climbing 0.2 percent as investors look to recover ground.
Markets are drawing early optimism from growing expectations that the Federal Reserve will cut interest rates later this month following disappointing employment data.
Friday’s jobs report showed employment increased by much less than expected in August, fueling bets on imminent Fed action.
CME Group’s FedWatch Tool currently shows a 90.1 percent probability that the Fed will lower rates by a quarter point at its upcoming meeting.
Despite the positive open, overall trading activity is expected to remain subdued as investors await key inflation data due later this week.
The Labor Department is scheduled to release producer price inflation data on Wednesday, followed by consumer price inflation figures on Thursday.
Economists expect the annual rate of producer price growth in August to hold steady at 3.3 percent, unchanged from July’s reading.
Consumer price growth is forecast to accelerate to 2.9 percent in August from 2.7 percent in July, while core consumer prices are expected to hold at 3.1 percent annually.
Friday’s session proved difficult for the major averages, with stocks failing to sustain an early push higher and briefly touching new record intraday highs before retreating.
The Dow Jones Industrial Average slid 220.43 points or 0.5 percent to close at 45,400.86, while the S&P 500 fell 20.58 points or 0.3 percent to 6,481.50.
The Nasdaq (COMP) edged down just 7.31 points, less than a tenth of a percent, finishing at 21,700.39 as tech stocks held up relatively well.
For the week, the Nasdaq jumped 1.1 percent and the S&P 500 rose 0.3 percent, though the Dow dipped 0.3 percent in a mixed performance across major benchmarks.
Asian markets provided a constructive backdrop heading into Monday’s session, with Japan’s Nikkei 225 Index surging 1.5 percent and China’s Shanghai Composite Index adding 0.4 percent.
European markets also moved higher, with France’s CAC 40 up 0.5 percent, Germany’s DAX gaining 0.4 percent, and the U.K.’s FTSE 100 advancing 0.2 percent.
In commodities, crude oil futures are jumping $1.25 to $63.12 a barrel after tumbling $1.61 to $61.87 a barrel last Friday.
Gold futures are inching up $4.30 to $3,657.60 an ounce after surging $46.60 to $3,653.30 an ounce in the previous session.
On the currency front, the U.S. dollar is trading at 147.73 yen, compared to 147.43 yen at the close of New York trading on Friday.
Against the euro, the dollar is trading at $1.1734, slightly higher than last Friday’s $1.1717 close as currency markets digest the shifting rate outlook.
