Wall Street Awaits Key Reports Amid Economic Jitters

Wall Street futures were steady on Monday as investors anticipate a busy week with the release of inflation data, Federal Reserve Chair Jerome Powell’s testimony, and the commencement of the second-quarter earnings season. Upcoming key reports and central bank actions could significantly impact financial markets.

Wall Street futures remained largely unchanged on Monday as investors braced for a week filled with crucial economic indicators. The focal points will include a significant inflation report, Fed Chair Jerome Powell's testimony, and the commencement of the second-quarter earnings season.

Friday's jobs report has fortified the belief that a September rate cut from the Federal Reserve is likely, with futures now indicating a 77% probability of such a move. S&P 500 and Nasdaq futures were nearly flat, while major financial institutions such as Citigroup, JP Morgan, and Well Fargo are slated to report on Friday, marking the start of the earnings season.

The U.S. consumer price report due on Thursday is anticipated to show headline inflation slowing to 3.1%, from 3.3%, with the core measure steady at 3.4%. The June CPI report is particularly pivotal, expected to continue the trend of moderating inflation. In addition, German and Chinese inflation figures are also due this week.

Meanwhile, European stocks experienced modest gains on Monday. In political news, a leftist alliance in France surprisingly seized the lead over the far right in Sunday's election, posing challenges to President Emmanuel Macron's pro-market reforms.

Elsewhere, in commodity markets, oil prices dropped as the market monitored the potential impact of Hurricane Beryl on Gulf of Mexico supplies.

(With inputs from agencies.)