US pre-open: Futures higher as traders await midterm election results, CPI

Wall Street futures were in the green before the bell on Monday as investors look ahead to this week's midterm election and the publication of the all-important consumer price index.

As of 1200 GMT, Dow jones futures were up 0.60%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.64% and 0.67% firmer, respectively.

The Dow Jones closed 401.97 points higher on Friday as market participants thumbed over a hotter-than-expected non farm payrolls report.

Monday's early gains come ahead of Tuesday's midterm election, which will determine which US party will control Congress, impacting future government spending, while

Traders were also looking forward to Thursday’s CPI report, which will give further insight into the Fed's efforts to fight inflation, with another hot inflation report likely to convince investors that a pivot away from higher interest rates may be further away than currently thought.

Swissquote's Ipek Ozkardeskaya said: "Stronger-than-expected inflation data could send global stocks lower by the end of this week. Therefore, gains, if any, will likely be vulnerable to a potentially unpleasant US inflation data by Thursday. And if the data is better than expected? Then, we could see a market rally. Investors are impatient to buy the dip at the current levels. Even if the data beats expectations slightly, it should be enough to send stocks higher."

Investors also digested China's renewed commitment to remain steadfast with its strict Covid-related measures following optimism last week that authorities would change their minds on restrictions that have been dragging down economic growth in the world's second-largest economy.

On the macro front, September consumer credit change figures will be out at 2100 GMT, while the Federal Reserve's Loretta Mester and Susan Collins will deliver speeches at 2140 GMT.

In the corporate space, Apple stock traded lower prior to the open after the tech behemoth revealed that iPhone production had been temporarily halted due to Covid-19 restrictions in China.

Palantir Technologies, Activision Blizzard, Lyft and Take-Two Interactive will all report earnings on Monday.

Reporting by Iain Gilbert at Sharecast.com