Dow Jones Futures Respond to Inflation Reports; Taiwan Semiconductor (TSM) Among Top 5 Stocks Nearing Buy Points

• Dow Jones futures, along with S&P 500 futures and Nasdaq futures, are set to open Sunday evening, with inflation data being a key focus in the coming week.
• The stock market rally had a solid week, with key indexes moving toward record or 52-week highs.
• Notable earnings reports this week include Walmart (WMT) and Applied Materials (AMAT), along with Asian e-commerce giants such as Sea (SE) and Alibaba (BABA).

Stock market rally continues with key indexes moving toward record highs, while inflation data remains a key focus for investors in the coming week.

Focus on Inflation Reports

Investor focus will be on the big inflation reports. The producer price index is due Tuesday, with the consumer price index on Wednesday. The PPI report is important because key components feed directly into the core PCE price index, the Fed’s favorite inflation gauge. Inflation data has been sticky or even picking up in recent months, spurring the Fed to push back expectations for rate cuts. Friday’s University of Michigan consumer sentiment index showed inflation expectations picking up.

Dow Jones Futures Today

Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Stock Market Rally

The stock market rally started the week strong, with the Dow Jones, S&P 500 and Russell 2000 reclaiming their 50-day moving averages on Monday. The Dow and S&P 500 kept moving toward record highs the rest of the week while the Nasdaq and Russell paused.

Conclusion

The stock market rally continues with key indexes moving toward record highs. However, inflation data remains a key focus for investors in the coming week. Investors should keep an eye on the big inflation reports due this week, as well as earnings reports from major companies such as Walmart and Applied Materials.