After witnessing considerable growth the preceding week, stocks are likely to see further rises in early trade on Monday. The primary market indicators point towards a moderate upward market open, with the S&P 500 futures rising by 0.2 percent.
The sustained upward push witnessed in recent times may continue to boost markets, helping the Dow retain its eight-day winning streak. The recent bullish market behavior could be attributed to renewed optimism regarding a potential reduction in interest rates by the Federal Reserve in the upcoming months. However, impactful inflation data set to be released this week might significantly affect the rate outlook.
Scheduled for Tuesday and Wednesday respectively, the Labor Department is expected to publish reports on producer and consumer price inflation. Economists predict an increase of 0.3 percent in producer prices for April, following a 0.2 percent rise in March, pushing the annual growth rate to 2.2 percent from the earlier 2.1 percent.
Consumer prices are anticipated to see a 0.4 percent rise in April, mirroring the increase observed in March. Core consumer prices, excluding food and energy costs, are forecasted to grow by 0.3 percent in April compared to a 0.4 percent rise in the previous month. The consumer price growth rate is expected to slightly drop to 3.4 percent in April, with the annual core consumer price growth rate slowing to 3.6 percent from 3.8 percent.
Further market attention can be expected this week from comments by Fed Chair Jerome Powell and reports on retail sales, industrial production, and housing starts.
In individual stocks, video game retailer GameStop is expected to witness a surge in early trading following a new post by social media influencer "Roaring Kitty", who was instrumental in driving a wave of activity in the retailer's stock in 2021. Website building platform Squarespace is forecasted to see a marked increase due to its recent announcement of a private all-cash transaction worth approximately $6.9 billion.
Conversely, PENN Entertainment may see a decline following a Bank of America downgrade from Buy to Neutral.
Significant market shifts were noted last Friday with the major averages ending mixed, though the Dow recorded its eighth consecutive trading day of gains. The Nasdaq marginally decreased by 5.40 points while the S&P 500 and Dow saw modest increases.
Over the week, the Nasdaq rose by 1.1 percent, while the S&P 500 and Dow saw increases of 1.9 percent and 2.2 percent respectively.
In international trading news, Asia-Pacific region stock markets displayed a mixed performance on Monday. Japan's Nikkei 225 Index and China's Shanghai Composite Index both saw slight decreases, while Hong Kong's Hang Seng Index rose by 0.8 percent.
Meanwhile, major European markets have experienced slight losses. The UK's FTSE 100 Index, the French CAC 40 Index, and the German DAX Index all dropped by 0.2 percent.
In the commodities market, after a recent drop to $78.26, crude oil futures showed signs of recovery while gold futures displayed a drop after a previous surge.
In currency news, the U.S. dollar is currently trading at 155.72 yen and $1.0796 against the euro.