Brendan McDermid | Reuters U.S. stock futures fell on Sunday as investors looked ahead to a week packed with midterm congressional elections and the latest consumer inflation report. Dow Jones Industrial Average futures fell 187 points, or 0.6%. S&P 500 and Nasdaq 100 futures fell 0.7% and 0.8%, respectively. Apple shares may fall after the tech company said iPhone production has been temporarily reduced due to Covid-19 restrictions in China. Those moves follow Friday’s rally, when the Dow Jones Industrial Average gained nearly 402 points, or 1.3 percent. The S&P 500 rose 1.36% and the Nasdaq Composite was 1.28% higher. However, the major averages ended the week with losses. The Dow ended a four-week winning streak on fears of a rate hike. Tuesday’s midterm elections will determine which party controls Congress and affect the direction of future spending. Democrats currently control the House and hold a majority in the Senate. A Republican sweep could signal greater support for oil and gas companies. On the economic front, investors expect Thursday’s CPI report to provide further insight into the Federal Reserve’s efforts to curb inflation. A hot inflation report could signal to investors that a pivot from higher interest rates, for a longer period, could be further away than expected. “[In] For stock and bond markets to match the post-peak inflation performance noted in the table, inflation must continue to decline — and at a faster rate than we’ve seen so far. Until the Fed signals that a pivot is near, things could remain challenging,” Baird’s Ross Mayfield wrote in a recent note. Elsewhere, several companies are expected to file on Monday, including Palantir Technologies, Activision Blizzard, Lyft and Take-Two Interactive. Corporate earnings season is winding down with the majority of S&P 500 companies having reported results.
