US pre-open: Futures higher as traders look ahead to key inflation reports

Wall Street futures were higher ahead of the bell on Monday as market participants looked ahead to key inflation data due out later in the week.

As of 1245 BST, Dow Jones futures were up 0.27%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.12% and 0.03% higher, respectively.

The Dow closed 206.97 points higher on Friday, clawing back the majority of losses recorded in the prior session.

All eyes will be on this week's inflation data, with key readings set to test the resilience of major indices that continue to hover near record highs. Tuesday's consumer price index will be first up, while Thursday's producer price index will follow, both of which could prove pivotal in shaping expectations around interest rate policy ahead of the Federal Reserve's September meeting.

A stronger-than-expected set of figures could dampen sentiment, particularly if they reignite concerns over persistent price pressures. The data will also serve as a precursor to the Fed's annual Jackson Hole symposium later this month, where policymakers are widely expected to signal their next move on rates.

Rostro's Joshua Mahony said: "This week sees US inflation come into the fold, with markets seemingly settling down after a period that saw sharp declines for the dollar on the growing confidence of a more rapid path lower for US rates. Weekend comments from Fed member Bowman highlighted that same narrative, indicating that she sees a further three 2025 hikes as likely. However, she also noted the potential need to provide a 50bp cut in the event that the jobs market continues to weaken. Nonetheless, there are two sides to the Fed's dual mandate, and thus a potential tariff fuelled rebound in prices could yet stifle the recent dovish turn to the benefit of the dollar."

No major corporate earnings or data points were scheduled for release on Monday.

Reporting by Iain Gilbert at Sharecast.com