By Scott Kanowsky
Investing.com -- U.S. stock futures were mixed on Monday, as investors gauged the potential for further interest rate hikes ahead of the release of key inflation data out of the world's largest economy.
At 07:00 ET (12:00 GMT), the Dow futures contract was down 21 points or 0.06%, S&P 500 futures traded 3 points or 0.09% higher, and tech-heavy Nasdaq 100 futures gained 48 points or 0.39%.
U.S. equities oscillated between the flat line on Friday, as stocks slumped to their worst week so far this year with traders eyeing the future path of Federal Reserve rate hikes, a stubbornly tight labor market and a bevy of corporate earnings.
The blue-chip Dow Jones Industrial Average closed up by 169 points or 0.50%, the broad-based S&P 500 rose by 0.22%, and the Nasdaq Composite dropped by 0.61%. On a weekly basis, all three of the indexes were in the red for the first time since December, snapping a previously solid start to trading in 2023.
Attention is set to turn to the highly significant U.S. consumer inflation data for January due to be released on Tuesday. Although the annual figure is expected to show further easing in price growth last month, it is still predicted to remain relatively high, which could invite more interest rate hikes by the Fed.
Adding to the broader economic picture was the release of fresh growth forecasts for the European Union. The European Commission lifted its projections for the EU, saying the bloc will likely dodge a recession, thanks in part to easing gas costs. The outlook for headline inflation in the 27-member bloc was also lowered, but the EU's executive arm warned that price pressures remain both strong and persistent.
Europe's economy has proved more resilient than feared in the face of Russia’s war in Ukraine, with Tuesday's revised Eurozone GDP anticipated to confirm quarterly growth of 0.1% in the final quarter of 2022. This could provide the European Central Bank with room to continue hiking interest rates in their battle with inflation, something ECB board member Isabel Schnabel touched on late last week.
European shares edged higher, although gains were limited.
In corporate news, the stream of company results out of the U.S. is set to ebb, with a large majority of firms in the S&P 500 having already unveiled their latest earnings. Palantir Technologies (NYSE:PLTR) and Arista Networks (NYSE:ANET) are among a number of businesses reporting today, followed by big-name brands like Marriott International (NASDAQ:MAR), AIG (NYSE:AIG), Kraft Heinz (NASDAQ:KHC), and Coca-Cola (NYSE:KO) later in the week.
Shares in Facebook-owner Meta Platforms (NASDAQ:META) moved up in pre-market trading after the Financial Times reported that the social media giant has delayed setting team budgets as it prepares for a fresh round of layoffs. The group slashed 11,000 jobs last year in a broad push to rein in costs to offset flagging advertising spending.
Elsewhere, oil prices weakened on worries a persistently hot inflationary outlook could cause the Fed to continue tightening monetary policy for longer than expected, severely impacting growth in the largest crude consumer in the world.
Also weighing was the resumption of Azerbaijani oil exports at Turkey's Ceyhan terminal over the weekend after the earthquake earlier this month in the region disrupted supply.
By 07:00 ET, U.S. crude fell 0.28% to $79.50 a barrel, while the Brent contract slipped 0.27% to $86.16.
Both contracts gained over 2% on Friday after Russia stated it will cut supply by 500,000 barrels per day from March, citing the price curbs on its exports imposed by western powers in punishment for its invasion of Ukraine.
Additionally, gold futures dipped to $1,872.55/oz, while EUR/USD traded largely unchanged at 1.0677.