U.S. stock index futures drop ahead of inflation data

This week's data for February, including CPI, will provide further indications on whether inflation has eased enough for policymakers to consider reducing borrowing costs in the upcoming months

U.S. stock index futures declined on Monday as investors awaited crucial inflation data this week to gain insights into the Federal Reserve's monetary policy direction.

The previous week saw Wall Street closing lower due to a drop in chip stocks and a labour market report showing more new jobs than anticipated, along with an unexpected rise in the unemployment rate.

The mixed report increased expectations of a Fed interest rate cut in June, with some traders even speculating on a rate cut in May following the latest data.

This week's data for February, including consumer prices (CPI), will provide further indications on whether inflation has eased enough for policymakers to consider reducing borrowing costs in the upcoming months. January's sticky inflation data and signs of a strong economy had previously delayed expectations of the first interest rate cut from March to June.

As of 05:00 a.m. ET, Dow e-minis were down 135 points, S&P 500 e-minis were down 10.25 points, and Nasdaq 100 e-minis were down 33.5 points.

Nvidia saw a 1.2% increase in premarket trading after a 5% drop on Friday, while other chip stocks like Qualcomm and Broadcom were down 0.5% and 0.8%, respectively. Boeing decreased by 0.8% following reports of a criminal investigation by the U.S. Justice Department into the 737 MAX incident on an Alaska Airlines flight.

LATAM Airlines flight LA800, a Boeing 787-9 Dreamliner, told the New Zealand Herald that a "technical problem" had caused a "strong movement" during a flight from Sydney to Auckland, hurting at least 50 people.

Crypto currency and blockchain-related companies such as Coinbase Global, Riot Platforms, and Marathon Digital saw gains between 4.5% and 5.6% as bitcoin reached a new record high.