US Futures Edge Lower as Traders Brace for Inflation Test

U.S. stock index futures slipped in pre-market trading on Monday as investors positioned cautiously ahead of a closely watched inflation report and a fresh round of corporate earnings. S&P 500 futures and Nasdaq 100 futures were down about 0.2% to 0.3%, while Dow futures fell roughly 0.1%, signaling a muted start to the week after recent market gains.

The modest pullback reflects lingering concern that inflation remains sticky enough to keep the Federal Reserve from easing policy quickly. Traders are looking to the upcoming Consumer Price Index data for clues on whether price pressures are cooling or proving more persistent than expected. The report could help shape expectations for interest-rate cuts later this year and influence sentiment across equities, bonds, and currencies.

European markets opened with a mixed tone, with the Stoxx 600 edging slightly higher as investors assessed the same macroeconomic backdrop. Beyond inflation, attention is also turning to corporate earnings, which may offer a clearer picture of how companies are navigating higher borrowing costs and uneven consumer demand.

For now, the market mood remains cautious, with investors awaiting fresh data before making bigger bets on the direction of stocks.