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Stock market today: US futures slip further into the red with key inflation print on deck

Karen Friar • Editor
Fri, May 31, 2024, 7:49 AM EDT

US stocks retreated further on Friday, as investors waited for a key inflation report seen as a potential turning point for a market gripped by rate-cut jitters and earnings disappointments.

Dow Jones Industrial Average futures (YM=F) slipped 0.2%, coming off two days of sharp losses. S&P 500 futures (ES=F) fell 0.3%, while those on the tech-heavy Nasdaq 100 (NQ=F) led the way down with a 0.5% drop.

The Personal Consumption Expenditures price index update is seen as pivotal for stocks headed for a losing week, given it will include a look at the Federal Reserve's preferred gauge of inflation. The Dow has shed not far off 1,000 points in three sessions as data surprises heightened the case for higher-for-longer interest rates.

A hotter-than-expected PCE print for April could cement that case, given inflation's trajectory remains crucial to the Fed's rate-cutting timeline. The focus is on "core" PCE, which strips out food and energy prices. Economists expect a rise of 0.2% month-on-month in the release, due at 8:30 a.m. ET.

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