Wall Street futures edge higher as investors await key U.S. Inflation data

U.S. stock futures made modest gains early Monday, reflecting a cautious but optimistic tone as investors brace for crucial economic releases and geopolitical developments this week. The market's attention is firmly on the upcoming Consumer Price Index (CPI) report, which could be decisive for the Federal Reserve’s next move on interest rates.

Futures for the Dow Jones Industrial Average rose by approximately 0.2–0.3%, supported by strength in industrial and banking shares. S&P 500 futures increased about 0.1–0.2%, buoyed by hopes that inflation may be cooling, while the tech-heavy Nasdaq-100 slipped 0.05–0.1% as semiconductor stocks came under pressure. Wall Street is coming off a week of record closes in the Nasdaq and strong performances in several mega-cap technology names.

Semiconductor giants Nvidia and AMD saw their shares drop by roughly 1–2% after agreeing to remit 15% of their China sales revenue to the U.S. government, a concession linked to new export licensing terms amidst ongoing U.S. China trade negotiations. This move aims to maintain cross-border business ties but adds layers of uncertainty for chipmakers already contending with slowing global demand and tighter competition.

Beyond technology, materials stocks made headlines: Albemarle Corp. surged more than 10% on supply concerns in the lithium market, while losses for C3.ai and Monday.com reflected sector volatility. Investors also remain attuned to the pending expiry of a U.S. China tariff truce, as well as an imminent meeting between President Trump and Russian President Putin, both potential flashpoints for markets this week.

Wall Street strategists are divided on the near-term direction: some argue that soft CPI and PPI prints this week could give stocks another push higher, while others warn that valuations especially in technology remain stretched, leaving the market exposed to any negative surprises in data or earnings.