American markets started the second week of July with weak signals from China and the shadow of the inflation forecast that will emerge in the evening. Nasdaq and S&P 500 futures are mildly overbought. The Russell 2000 index, which includes smaller companies, started the week flat.
As of 15.20, the latest situation in US futures is as follows:
- Dow Jones: 33,778, +0.13%
- S&P 500: 4,401, +0.06%
- Nasdaq 100: 15,039, +0.01%
- Russell 2000: 1,863, -0.06%
While the wage data, which came above the expectations last week, led to an increase in the expectation of the FED to act more harshly on interest rates, employment remained weak. Hourly revenues rose 4.4% in the country, according to data released on Friday. Non-farm employment fell to 209 thousand, the lowest level of the last year and a half. These statistics revealed that businesses are more conservative about their workforce.
How Do Economic Data Affect Stocks?
Stock investors, on the other hand, are more concerned with the decisions of the FED rather than these data. The continuation of the rise in workers’ wages raises concerns about inflation. This means that the FED, which is struggling with inflation, can push the interest rates even higher.
The increase in financing costs as a result of high interest rates drags down the company’s profits. The decrease in the profit expectations of the investors has a negative effect on the stock prices.
US Inflation forecasts will come out at 18:00 Turkish time.
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