On Monday, stock futures experienced a modest increase as investors prepare for a week rich in data, featuring two significant reports on inflation. Investors are poised for two pivotal inflation reports this week, seeking deeper understanding of economic conditions following Friday’s disappointing hiring data. The producer price index report for August is scheduled for release on Wednesday morning, with the consumer price index to follow on Thursday.

The data comes on the heels of a disappointing August jobs report, which has bolstered investor optimism regarding the likelihood that the Federal Reserve will reduce benchmark interest rates at its upcoming policy meeting later this month. The jobs figures also heightened the likelihood of a half-point rate cut. “The weak jobs report supports our view that we’re transitioning to early cycle – from rolling recession to rolling recovery,” stated Morgan Stanley. “The immediate risk hinges on the adequacy of the monetary policy response.” Short-term volatility may pave the way for a robust conclusion as we approach both the end of the year and 2026.

Investors will closely monitor the reports to assess the economy’s resilience, seeking to determine if stocks can maintain their position at record highs. As we approach Monday’s trading session, the S&P 500 stands merely 0.8% below its latest peak.