FX.co ★ U.S. Stocks May Extend Recent Rebound In Early Trading

On Monday, stock markets are anticipated to rise in early trading, continuing the upward momentum observed in recent sessions. Futures for the major indices suggest a positive opening, with S&P 500 futures currently up by 0.3 percent.

The improved economic outlook may persist in driving buying activity on Wall Street, following the significant decline earlier this month. However, overall trading may be somewhat muted as traders await several key economic reports due later this week.

The Labor Department is set to release data on producer price inflation on Tuesday and consumer price inflation on Wednesday. These reports are expected to influence the outlook for interest rates. The Federal Reserve is widely forecasted to lower interest rates next month. According to CME Group's FedWatch Tool, there is a divide among traders on whether the rate cut will be a quarter point or a half point.

In light of the recent economic concerns, traders are also likely to focus closely on upcoming reports regarding retail sales and industrial production.

After Thursday's rally, stocks delivered a relatively lackluster performance on Friday but still finished the session mostly in positive territory. The major indices ended off their daily highs but remained in the green. The Dow Jones Industrial Average edged up 51.05 points, or 0.1 percent, to close at 39,497.54. The Nasdaq Composite increased by 85.28 points, or 0.5 percent, to 16,745.30, and the S&P 500 gained 24.85 points, or 0.5 percent, to 5,344.16.

With these gains, the Nasdaq and S&P 500 largely recovered from Monday's sizable losses, closing only slightly lower for the week. For the week, the S&P 500 slipped by less than 0.1 percent, the Nasdaq dipped by 0.2 percent, while the narrower Dow Jones Industrial Average fell by 0.6 percent.

Internationally, stock markets in the Asia-Pacific region mostly advanced on Monday, except in Japan, where markets were closed for a holiday. South Korea's Kospi surged by 1.2 percent, and Australia's S&P/ASX 200 Index rose by 0.5 percent.

In Europe, major markets are showing mixed results. The French CAC 40 Index is down by 0.1 percent, while the German DAX Index is up by 0.2 percent, and the U.K.'s FTSE 100 Index is up by 0.4 percent.

In commodities trading, crude oil futures are climbing $0.86 to $77.70 per barrel, following a rise of $0.65 to $76.84 per barrel last Friday. Gold futures are increasing $10.30 to $2,483.70 an ounce after rising $10.10 to $2,473.40 an ounce in the previous session.

On the currency front, the U.S. dollar is trading at 147.60 yen compared to 146.61 yen at Friday's close in New York. Against the euro, the dollar is at $1.0922, up from $1.0917 last Friday.