Dow futures rise 35 pts; caution ahead of key inflation data

Investor caution ahead of the release of significant inflation data and the minutes from the most recent Federal Reserve meeting is expected to prevent U.S. stocks from opening Tuesday’s trading session slightly higher.

At 11:00 GMT, the Nasdaq 100 futures were up 20 points, or 0.2%, the S&P 500 futures were up 7 points, and the Dow futures contract was up 35 points, or 0.1%.

Investors were weighing the effects of the March jobs report, which was announced on Good Friday, on future Federal Reserve monetary policy as the major indices ended Monday with mixed results.

The tech-heavy Nasdaq Composite saw slight losses, but the blue-chip Dow Jones Industrial Average closed 100 points, or 0.3%, higher and the S&P 500 gained 0.1%.

Last month, the economy added 236,000 jobs, bringing the unemployment rate to 3.5%, which is a more than 50-year low.

Fears that the Federal Reserve would continue to raise interest rates have grown as a result of this evidence of sustained strength in the labour market.

In light of this, investors will pay close attention to the Fed’s second mandate this week, which is price stability, in order to gather more information about the Fed’s willingness to continue making aggressive rate hikes.

The release of March inflation data is scheduled for this Wednesday. According to experts, core consumer price inflation, which excludes the expenses of food and fuel, is expected to climb by 0.4% on a monthly basis and 5.6% annually, up from 5.5% in February.