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While that signaled the Fed's monetary tightening was cooling
the world's largest economy, it comes close on the heels of
strong jobs data last week, clouding the outlook for the Fed's
policy path.
Investors are now focused on inflation data due next week ahead
of the Fed meet. Consumer prices are likely to have cooled
slightly on a month-over-month basis in May but core prices are
expected to have remained sticky.
Fed officials last week made the case for the central bank to
keep rates steady at its June 13-14 meeting and look for more
factors to ascertain whether the economy was cooling or higher
rates were warranted. The officials have entered a "blackout"
period.
Fed fund futures imply traders have priced in a 76% chance that
the Fed will hold interest rates in the 5%-5.25% range,
according to CMEGroup's Fedwatch tool. However, they see 50%
odds of another 25-basis-point rate hike in July.
At 5:44 a.m. ET, Dow e-minis were down 48 points, or 0.14%, S&P
500 e-minis were down 3.75 points, or 0.09%, and Nasdaq 100
e-minis were down 4.25 points, or 0.03%.
U.S. stocks have advanced in recent weeks, with a rally in
megacap stocks, a stronger-than-expected earnings season and
hopes of a pause in interest rate hikes pushing the benchmark
S&P 500 and the tech-heavy Nasdaq to fresh 2023 highs on Friday.
Apple Inc slipped 0.5% after hitting a record high in the
previous session. The iPhone maker on Monday unveiled a costly
augmented-reality headset called the Vision Pro, barging into a
market dominated by Meta.
Advanced Micro Devices rose 1.8% after Piper Sandler hiked price
target on the stock to $150, the second highest on Wall Street,
as per Refintiv data.
Oil stocks such as Exxon Mobil and Chevron slipped about 1% each
as crude prices dropped about 2% each on concerns about the
global economic backdrop. [O/R]
(Reporting by Sruthi Shankar in Bengaluru; Editing by Vinay
Dwivedi)
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