US stock index futures muted ahead of data-packed week with CPI in focus

US stock index futures were subdued on Monday, as investors braced for a data-packed week, with focus on US consumer prices that will provide strong cues about Federal Reserve's interest rate move in September, reports Reuters.
Markets rounded off last week amid heightened volatility, beginning with a sharp selloff on a weaker-than-expected July jobs report that sparked recession fears, and investors unwound currency carry trade positions involving the Japanese yen.
Investors are likely to stay on the sidelines this week until Wednesday's US consumer price index (CPI) reading, which is expected to show inflation in July accelerated 0.2 per cent on a monthly basis, but remain unchanged from a month ago at 3.2 per cent.
Money markets are evenly split between a 50- and a 25-basis-point (bps) cut in US interest rates, expecting a total easing of 100 bps by the end 2024, according to CME's FedWatch Tool.
Figures for July US retail sales on Thursday are likely to show marginal growth, and investors expect that any weakness in the data could reignite fears of consumer slowdown and a potential recession.
"With improving liquidity, more reasonable tech valuations, and the potential for gradual Fed rate cuts starting in September, investors should navigate summer turbulence with a steady focus on long-term opportunities," said Seema Shah, chief global strategist, Principal Asset Management.
Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further "welcome" progress on inflation in the last couple months even as she said inflation remains "uncomfortably above" the central bank's 2 per cent goal and subject to upside risks.
The CBOE Volatility Index , Wall Street's fear gauge, was up slightly at 20.67 points, but much lower than the peak of 65.73 a week earlier.
At 4:46 a.m. ET, the S&P 500 e-minis were up 5.5 points, or 0.1 per cent, Nasdaq 100 e-minis were up 37.25 points, or 0.2 per cent, Dow E-minis were down 15 points, or 0.04 per cent.
In premarket trade, most megacap stocks were up, led by a 1 per cent gain in Nvidia. Shares of Goodle-parent Alphabet were down 0.1 per cent.
Starbucks climbed 2.5 per cent on reports that activist investor Starboard Value, which holds a stake in the coffee giant, wants the company to take steps to improve its stock price.
Robinhood Markets climbed 1.7 per cent after brokerage Piper Sandler upgraded the stock to "overweight" from "neutral" and also raised its target price.
Hawaiian Electric dropped 6 per cent after the utility firm raised "going concern" doubts on Friday. The company disclosed that it did not have a financing plan in place for the $1.99 billion Maui wildfire settlement it reached earlier this month.