Tech Strength Drives US Stocks Higher as Inflation Data Looms

Stocks in the US are poised to extend their gains, driven by strength in technology stocks. This comes after the S&P 500 ended last week at a fresh all-time high. The September S&P 500 E-Mini futures (ESU26) and Nasdaq 100 E-Mini futures (NQU26) are up +0.13% and +0.35%, respectively.

The tech sector is leading the gains, with chipmakers like Microchip Technology (MCHP) climbing over +13% after reporting better-than-expected results. Other notable gainers include Airbnb (ABNB), which surged over +17% after posting upbeat Q2 results and raising its full-year revenue growth guidance.

This week's market focus will be on the release of key US inflation data, particularly the consumer price index for July. Economists expect headline inflation to slow to +3.4% y/y and core inflation to ease to +2.5% y/y, which would strengthen the case for the Fed to stay on hold.

Bret Kenwell at eToro noted that the latest jobs report was weak enough to take some pressure off the Fed to raise interest rates but not yet weak enough to signal the economy is falling apart.