NYSE Trader, Aug. 4, 2022.

Source: NYSE

Following the S&P 500’s third straight weekly gain, stock futures were flat in overnight trade as investors turned their attention to a key inflation report this week.

Dow Jones Industrial Average futures fell 40 points. S&P 500 futures and Nasdaq 100 futures both fell 0.1%.

The overnight action followed weekly gains in the S&P 500 and Nasdaq Composite, as a surprisingly strong monthly jobs report eased some recession fears. A resilient labor market also suggests the economy can withstand more rate hikes by the Federal Reserve.

New consumer price readings due on Wednesday will give investors more clarity on the central bank’s next move at its September policy meeting. Traders now see a higher chance of a 0.75 percentage point hike next month, which would be the third straight increase of that magnitude.

“The strong job market growth last month should further cement the argument that the U.S. is not in a recession right now,” said Jeffrey Roach, chief economist at LPL Financial. “The big job gains came as a surprise. , and may lead people to believe that … the economy needs another 75bps rate hike at the next Fed meeting. All eyes are now on inflation.”

The headline CPI, which includes energy and food, is expected to fall to 8.7% in July from a 40-year high of 9.1% in June, data from Dow Jones showed.

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