Futures Trade Sideways With Inflation Data in Focus

U.S. equity futures are trading in a consolidation range as investors await key macroeconomic data and the start of the fourth-quarter earnings season.

Futures linked to the S&P 500 and Nasdaq remain near recent highs, reflecting cautious positioning ahead of the December consumer price index (CPI) report and several market-moving events scheduled for the day.

Previous session

During the prior trading session, both the S&P 500 and Nasdaq closed near flat. The S&P 500 posted a modest gain, slightly extending its record high while remaining within a local upward trend.

The Nasdaq continued to trade below the 25,800 level, holding within a considered medium-term ascending channel despite limited upside momentum.

Today’s market setup

In early trading, S&P 500 futures are consolidating within a local ascending channel, hovering near record levels. Technical support is seen around the 6,900 area.

Nasdaq futures are stabilizing near 25,900, trading below a local descending trendline. Key support remains at 25,500, where buyers have previously stepped in.

Key drivers in focus

The main macro catalyst for markets today is the release of the December CPI report, which will shape expectations around the Federal Reserve’s interest-rate outlook.

In addition, JPMorgan is set to open the U.S. fourth-quarter earnings season before the market opens, potentially setting the tone for the broader banking sector.

Investors are also closely watching a pending U.S. Supreme Court decision related to tariffs, which could have meaningful implications for trade-sensitive assets.

Further data releases include weekly ADP employment figures and new home sales, while the U.S. Treasury is scheduled to auction 30-year government bonds.

Sector performance

Cyclical sectors showed mixed performance in the previous session. Industrials and aerospace-related groups led gains, while financials and energy lagged.

Growth-oriented sectors posted broadly positive moves, with solar and cannabis-related equities outperforming. Biotechnology and communication services ended slightly lower.

Defensive sectors recorded modest gains, led by consumer staples, which broke above a medium-term descending trend channel.

Cross-asset signals

In commodities, oil prices are testing the upper boundary of a medium-term descending channel, holding confirmation above the $59 level.

U.S. Treasury yields continue to move sideways, consolidating below the 4.2% mark.

Volatility remains elevated, with the VIX holding above 15 within a local upward trend from December lows.

Gold prices are trading near the upper boundary of an ascending channel, maintaining levels around 4,600.

Market participants remain cautious as inflation data, earnings results and policy developments converge, potentially setting the tone for near-term risk sentiment.

Technical analysis by: Lucas Grant, Senior Technical Analyst at Finmire.