© Reuters.
Investing.com– U.S. stock index futures fell in evening deals on Sunday, extending declines on Wall Street as the technology sector was walloped by profit-taking, with focus turning squarely to key upcoming inflation data.
Profit-taking in the technology sector, especially in market darling NVIDIA Corporation (NASDAQ:), saw Wall Street indexes pull back sharply from record highs on Friday.
A mixed employment report also factored into market caution, given that it showed grew more than expected in February, and came just after a series of somewhat hawkish signals on U.S. interest rates from the Federal Reserve.
fell 0.2% to 5,183.25 points, while fell 0.4% to 18,228.50 points by 19:04 ET (23:04 GMT). fell 0.1% to 39,161.0 points.
CPI data awaited for more rate cut cues
Markets were now awaiting key (CPI) inflation data, due on Tuesday, for more cues on the path of U.S. interest rates and the economy. The reading is expected to show some easing in inflation after outsized CPI readings for the past two months, although the is still expected to remain well above the Fed’s annual 2% target.
Fed Chair Jerome Powell, as well as several other central bank officials, had signaled last week that they were still seeking more signs that inflation was weakening, before the bank would consider cutting interest rates.
Their comments had weighed on Wall Street, with Friday’s losses also coming as Minneapolis Fed President Neel Kashkari said he did not see more than one, or two rate cuts in 2024.
The fell 0.7% to 5,123.69 points on Friday, while the fell 1.2% to 16,085.11 points. The closed 0.2% lower at 38,722.69 points.
Is the Wall Street rally running out of steam?
Wall Street indexes also clocked a weekly loss last week, raising questions over whether a stellar rally through February was now running out of steam.
Gains in technology, amid hype over artificial intelligence, were the biggest drivers of Wall Street over the past month, especially as investors piled into Nvidia Corp and other chipmakers.
But Nvidia’s losses on Friday raised questions over just how long this rally could run, especially amid persistent uncertainty over the path of U.S. interest rates.
