US Indices are Getting Busier After Declines

S&P 500 futures and Nasdaq-100 futures saw modest gains, rising by 0.1% and 0.3% respectively. In the cryptocurrency market, Coinbase and Marathon Digital experienced declines of 1% and nearly 3%, amid a decrease in Bitcoin prices. This downtrend was triggered by a false announcement on the U.S. Securities and Exchange Commission’s X account, mistakenly claiming the approval of Bitcoin ETFs.

Investors are now turning their attention to the latest Consumer Price Index (CPI) report, set to be released on Thursday. Economists surveyed by Dow Jones anticipate a 3.2% year-over-year increase in the CPI for December. This report is critical, as it will provide insights into the potential timing for the Federal Reserve to commence rate cuts. While there has been some recent scaling back in these expectations, the CME Group FedWatch tool indicates a 64% probability of rate cuts.

The focus on earnings will intensify on Friday, with anticipated results from major financial institutions such as JPMorgan Chase and Bank of America. Additionally, reports from UnitedHealth Group and Delta Air Lines are expected, marking a significant day in the earnings calendar.

For the Nasdaq and other US major indices, the uncertainty continues, and markets are not taking any uncalculated bets until the final data on Thursday and Friday are delivered. The momentum is still strong but volatility may intensify as this week's economic data and the beginning of the Q4 earnings may impact risk sentiment.