U.S. stock futures are pointing to a higher open on Monday to start the week following a volatile 2 weeks in the market as U.S. stock indexes came under more selling pressure and saw increased volatility due in part to rising concerns about higher wage inflation and possibly a 4th interest rate hike in 2018.
U.S. stock indexes are in correction territory and declined 10 percent since obtaining record highs 2 weeks ago.
The Federal Reserve has repeatedly emphasized in their policy statements that decisions about future interest rate hikes are data dependent and not on a preset course.
Two U.S. inflation reports for the month of January will come into focus this week and shed more light about whether the trend of higher wage growth will lead to higher inflation.
Over the year, average hourly earnings have risen by 75 cents or 2.9 percent, according to the January non-farm payroll report from the U.S. Department of Labor.
On Wednesday February 14th the Consumer Price Index (CPI) for January is due followed by the Producer Price Index (PPI) on Thursday.
Some of the other economic data that will be released this week includes the Treasury Budget for January reported today, retail sales for January on Wednesday alongside business inventories, industrial production, petroleum report, and the Housing Market Index.
On Friday housing starts for January will be reported in addition to import/export prices, and consumer sentiment for February.
President Trump is expected to announce a infrastructure plan later today.
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