US stock futures muted; Oracle slumps ahead of key CPI release

US stock index futures traded in tight ranges Tuesday, steadying after a sharp pullback in technology stocks dragged Wall Street off record highs, with focus remaining on key upcoming inflation data. 

At 06:30 ET (11:30 GMT), Dow Jones Futures traded 5 points, or 0.1%, higher, S&P 500 Futures gained points, or 0.7%, and Nasdaq 100 Futures rose 20 points, or 0.1%.

Losses in tech saw the S&P 500 fall 0.6% on Monday, while the NASDAQ Composite slipped 0.6% and the Dow Jones Industrial Average dropped 0.5%. 

Risk sentiment was also rattled by heightened geopolitical uncertainty over a regime change in Syria, as the Bashar al-Assad government was overthrown after over 20 years of rule.  CPI data awaited for more rate cues 

The focus this week is squarely on US consumer price index inflation data, due on Wednesday, which could influence the Federal Reserve at its monetary policy meeting later this month. 

Headline CPI is expected to increase slightly to 2.7% from 2.6% year-on-year, while core CPI , which excludes volatile food and energy items, is expected to remain at 3.3%.

While inflation had fallen steadily earlier in 2024, it turned more sticky in recent months amid resilience in the US economy, sparking some uncertainty over the outlook for interest rates.

Markets are still holding out for a 25-basis-point rate cut by the Federal Reserve next week. But the longer-term outlook for rates has now turned more uncertain, with expectations of inflationary policies under incoming President Donald Trump adding to the mix.  Oracle pressures tech sector

Losses in technology stocks, after a strong run-up in recent weeks, were the biggest weight on Wall Street on Monday, with Nvidia (NASDAQ:NVDA ) among the biggest decliners following reports that China was probing the firm over antitrust concerns. 

Oracle (NYSE:ORCL ) tumbled over 8% in premarket trade after the cloud firm’s quarterly earnings missed lofty street estimates, amid increased competition in the sector. 

Among other movers, MongoDB (NASDAQ:MDB ) stock fell almost 5% despite the software company raising its forecast for annual results, while C3.ai (NYSE:AI ) rallied 10% after its quarterly earnings topped estimates on robust AI-fueled demand.

Eli Lilly (NYSE:LLY ) stock added 1% after it announced a new $15 billion share buyback and hiked its dividend.

Quarerly results are also expected from the likes of GameStop (NYSE:GME ) and Dave & Buster’s Entertainment (NASDAQ:PLAY ). 3. TSMC’s revenue continues to gro Oil hands back gains

Crude prices slipped slightly lower Tuesday after the previous session’s healthy gains, as traders assessed the turmoil in the Middle East as well as the Chinese economic outlook.

By 06:30 ET, the US crude futures (WTI) dropped 0.5% to $68.02 a barrel, while the Brent contract dropped 0.4% to $71.82 a barrel.

Oil prices rose over 1% on Monday, boosted by China’s top political body raising hopes for more stimulus measures as well as heightened geopolitical tensions in Syria.

However, concerns have since eased about the fallout from Syrian President Bashar al-Assad's overthrow, with Syria's rebels working to form a government and restore order.

Turning back to China, the country’s Central Economic Work Conference, which is set to begin on Wednesday, is now expected to provide more insight into planned stimulus after Beijing said it will “vigorously” support local consumption at the start of the week.

(Ambar Warrick contribued to this article.)

Source: Investing.com