US pre-open: Futures higher following Dow's best week of 2024

Wall Street futures were trading only slightly higher ahead of the bell on Monday following a winning week for the Dow.

As of 1250 BST, Dow Jones futures were up 0.08%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.14% and 0.24% firmer, respectively.

The Dow closed 125.08 points higher on Friday as the blue-chip's best week so far this year drew to a close.

As for the new week, market participants will hope to gain further insights into the Federal Reserve's thinking when it comes to the future of monetary policy, with April's consumer price index report set to be published on Wednesday. Investors will look to see numbers that signal a return to rate hikes being largely off the table despite a speight of hotter-than-expected inflation data in recent months.

Trade Nation's David Morrison said: "US stock indices were firmer in early trade this morning, adding to gains made not just on Friday, but for all of last week. For the week as a whole, the Dow added 2.2%, the S&P 500 was up 1.9% while the NASDAQ 100 and Russell 2000 rose 1.1% a piece. This month has seen a big turnaround in sentiment following a difficult few weeks in April. But having now factored in fewer rate cuts than previously forecast, investors have taken comfort from recent comments from the Federal Reserve.

"These have indicated that the next move in rates will be down, rather than up, despite the rebound in inflation this year. This view has been reinforced by recent employment data which has shown that the jobs market is now not as tight as it was. This, in turn, has reduced concerns that the remarkably low unemployment rates which had continued despite aggressive rate hikes, will lead to higher inflation. A tight labour market raises the risk of upward inflationary pressures as workers can demand, and receive, higher wages."

Corporate results will also remain in focus as Q1 earnings season starts to quiet down.

Elsewhere, Federal Reserve vice chair Philip Jefferson and Cleveland head Loretta Master will both deliver speeches at 1400 BST.

Reporting by Iain Gilbert at Sharecast.com