U.S. stock futures rose on Monday as Wall Street edged ahead of expected inflation data this week.
Futures tied to the S&P 500 and the technology-linked Nasdaq Composite rose 0.5 percent each, while Dow Jones Industrial Average futures rose 0.4 percent, or 125 points.
In commodities, oil prices rose, extending a string of recent back-and-forth swings. West Texas Intermediate (WTI) and Brent crude futures rose about 1 percent to $87.67 a barrel and $93.86 a barrel, respectively.
everything eyes on August Consumer Price Index (CPI) should be released before markets open on Tuesday.
Economists polled by Bloomberg had expected the core consumer price index to rise 8.1 percent from a year earlier in August, a slowdown from the 8.5 percent increase seen in July. On a monthly basis, the CPI is expected to show a 0.1% drop in prices from July to August, mainly due to the continued decline in energy prices. If realized, it would mark the first monthly decline since May 2020.
The core consumer price index, which strips out the volatile food and energy components of the report and is closely watched by the Fed, was likely to rise in August, rising 6.1% from the same month last year, up from 5.9% on a year-over-year basis – an annual increase seen in July.
The reading will likely confirm to investors whether the Federal Reserve raises interest rates by 0.50% or 0.75% at its policy meeting later this month.
In recent weeks, Fed policymakers have doubled down on the US central bank’s commitment to continue a tight monetary policy for as long as necessary to restore price stability.
Federal Reserve Governor Chris Waller said at a conference in Vienna, Austria on Friday that he favors a “significant” increase in the benchmark interest rate at the Fed’s September 20-21 meeting.
“I expect it will take some time before inflation returns to our 2 percent target and that the FOMC will tighten policy until 2023,” Waller said. “The right interest rate would need to move significantly above this neutral level to further constrain aggregate demand and put more pressure on prices.”
CME Group’s The Fedwatch tool puts the likelihood for a three-quarters of a percent increase at 90%, up from 69% two weeks ago.
There is also a list of Wall Street institutions raised their bets by 75 basis points this month, including Bank of America, Goldman Sachs and Nomura.
Elsewhere in the markets, Twitter (TWTR) was in the spotlight after the social media platform responded to a Sept. 9 letter from Elon Musk stating that the company intends to enforce the merger agreement and demanding that Musk and his team abide by the terms of the deal. Shares fell about 1% in premarket trading.
Disney (DIS) was also in the spotlight early Monday after activist investor Dan Loeb apparently backed away from recent pressure for the company to sell or spin off ESPN. Loeb’s hedge fund Third Point Management said in August it had bought a $1 billion stake in Disney.
“We better understand ESPN’s potential as a standalone business and another vertical for Disney to reach a global audience to generate advertising and subscriber revenue.” Loeb said in a tweet on Sunday after Disney CEO Bob Chapek vowed to “restore ESPN to its growth trajectory.”
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc