US Futures Slip on Inflation Concerns and Trade Tensions
US futures slipped ahead of key inflation and economic growth data releases, as well as quarterly earnings from Nvidia. The S&P 500 was down 0.1% before the opening bell, while Dow Jones Industrial Average futures fell slightly and Nasdaq futures dropped 0.2%. Investors will get a crucial update on inflation when the US releases its report on July consumer spending, or personal consumption expenditures.
The Federal Reserve's preferred measure of inflation has remained above 3% since early this year, exceeding the central bank's target. The Commerce Department will also issue its second estimate of US economic growth during the second quarter, showing a sluggish 1.5% pace from April through June due to rising imports.
The trade war between the US and Canada escalated sharply, with Canada imposing retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances, and farm equipment. This could raise costs for American businesses and consumers less than 2½ months before the midterm elections.