Abdelrahman
Traders Navigate Market Changes Ahead of Inflation Reports
On February 10, 2025, traders were seen actively engaging on the floor of the New York Stock Exchange. (Photo by Spencer Platt | Getty Images)
As Monday evening progressed, U.S. stock futures dipped slightly, with investors anticipating crucial inflation data expected later this week. The futures for the Dow Jones Industrial Average experienced a decline of 44 points, marking a decrease of approximately 0.1%. Similarly, the futures linked to the S&P 500 and Nasdaq 100 also fell by around 0.1%.
During the regular trading hours on Monday, the Nasdaq Composite index made notable gains of nearly 1%. Notable semiconductor companies saw significant increases in their stock prices, with Nvidia and Micron Technology climbing by 2.9% and 3.9%, respectively. Additionally, major tech firms like Alphabet and Microsoft also reported positive performance throughout the trading day.
In a noteworthy development, President Donald Trump issued an executive order on Monday evening, instituting a 25% tariff on steel imports and increasing aluminum tariffs from 10% to 25%. These tariffs are set to take effect on March 4. Following Trump’s announcement, shares of steel manufacturers surged, with Cleveland-Cliffs shares rising nearly 18%, while Nucor stocks increased by over 5%.
Market participants are keenly observing these developments as they await inflation figures to be released this week, including the consumer price index (CPI) set to be disclosed on Wednesday, followed by the producer price index (PPI) on Thursday.
According to Sam Stovall, chief investment strategist at CFRA Research, the long-term impact of the tariffs may become evident only after reviewing the forthcoming inflation reports. He noted that if the tariffs disrupt supply chains and lead to increased inflation, it could raise investor concerns. Conversely, he mentioned that the expected decline in both the year-on-year headline and core CPI and PPI figures might bolster market confidence, allowing it to gradually increase.
In addition to economic reports, traders are also keeping an eye on Federal Reserve Chair Jerome Powell, who is scheduled to give a testimony before Congress on Tuesday morning.
On the earnings front, several companies are set to share their quarterly results on Tuesday, including Coca-Cola, Humana, Lyft, and Super Micro Computer.
As the market continues to evolve, investors are reminded to stay informed and proactive in their trading strategies.
