US Stocks Rally amid Anticipation of Inflation Data

As the trading day progresses, US equity futures continue to climb, following a string of gains in previous weeks. The S&P 500, which recently surpassed its 50-day moving average, has risen by 3.7% this month, with the Dow Jones Industrial Average set for a 40 point gain today. Markets are currently waiting for important inflation data, due to be released on May 15, which may influence whether the Federal Reserve decides to cut interest rates this year. Last week saw better-than-expected earnings, alongside weak labour market data, leading many analysts to predict that the Fed will deliver the first of two rate cuts in September. Other economic indicators, including April’s retail sales and first quarter earnings from major companies such as Home Depot and Walmart, will also be closely watched this week. The US dollar index fell by 0.04% early this morning, whilst European markets remained relatively stable, with investors focusing on upcoming inflation and GDP reports. In Asia, the Bank of Japan’s decision to reduce government bond purchases caused a slight fall in the Nikkei 225, whilst the MSCI ex-Japan index saw gains led by Hong Kong and Taiwanese stocks. GameStop shares jumped by almost 20% pre-market after popular trader Keith Gill returned to Twitter.