Investors are bracing for a potential downturn in US stock markets as they anticipate the release of crucial inflation data for January. Futures trading indicates a negative opening bell on Tuesday, with the Nasdaq expected to drop by 0.7% to 17,851.
The S&P 500 and Dow Jones futures are also showing declines, down 0.4% and 0.1% respectively, with figures at 5,022 and 38,830.
City Index analyst Fawad Razaqzadal noted, “A potentially stronger inflation report could further bolster the dollar’s position against currencies with lower yields,” anticipating the release of data at 8:30 am ET. Razaqzadal added, “A softer reading would be welcomed by traders favouring foreign currencies over the US dollar.”
Analysts are forecasting the consumer price index to be at 2.9% for January, a slight decrease from December’s reading of 3.4%.
In addition to the inflation data, notable companies such as Coca-Cola, Airbnb, and Shopify are scheduled to report their earnings on Tuesday, adding further anticipation and potential volatility to the market.
