Consumer inflation on Wall Street

U.S. stock index futures are subdued as investors anticipate critical economic data, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI) releases, which could affect the Federal Reserve's interest rate decisions. The market experienced significant volatility last week, highlighted by a sharp sell-off on Monday due to recession fears, followed by a recovery on Thursday, yet major indices closed the week lower. Upcoming earnings from retail giants Walmart and Home Depot are expected to shed light on consumer behavior, with Walmart's performance being closely watched as an indicator of economic health. Market predictions indicate a split expectation regarding potential interest rate cuts by the Fed, reflecting uncertainty among investors. Despite the turmoil, some experts suggest that the stock market may have overreacted, with hopes for stabilization in the coming days. The release of inflation data and labor market trends will be pivotal in shaping market sentiment this week.