10 July 2023
U.S. stocks are set to open lower as investors await an inflation report and express concerns over China’s economic slowdown. S&P and Nasdaq futures indices dropped 0.2% and 0.3% respectively, with trading volumes at their lowest this month. Chinese consumer prices remained almost unchanged, while producer prices declined further. The data suggests the potential for more monetary easing but highlights the challenge faced by Beijing in stimulating the economy. Weaker global growth due to higher interest rates is also impacting equity valuations, making it difficult for stocks to sustain a rally.