US stock index futures eased over Fed rate hike speculation

Wall Street stock index futures were pointing at a lower opening on Monday pre-session hours as market players looked ahead of further economic data while keeping into account Yellen’s remarks as Fed’s March meeting gets closer.
On Friday, US equity markets closed under pressure but still in green territory following Fed head hints regarding a possible rate increase as soon as this month.
Fed Chairwoman Janet Yellen said the Federal Open Market Committee will evaluate the current state of the economy before proceeding with a rate hike.
"We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect," Yellen said in prepared comments.

• Dow Jones Industrial Average: 0.01 percent / 21005.71 points
• Standard & Poor’s 500: 0.05 percent / 2383.12 points
• Nasdaq Composite: 0.16 percent / 2383.12 points

A large number of FOMC officials have expressed their support for a rate hike this month, with most of them saying it is advisable to raise them sooner than rather too late.
Employment and inflation are the two key indicators that Fed representatives look at when deciding on benchmark rate moves. During her speech, Yellen said that core consumer price index, which excludes food and energy prices, currently stands at 1.7 percent, pretty close to Fed’s 2 percent target. As for the job market, the Bureau of Labor Statistics reported on Friday that the economy added a better-than-expected 227,000 jobs. In this context, Yellen hopes the unemployment rate remains around 4.8 percent.
According to fed funds tracked by CME Group’s FedWatch program, market players are currently pricing in a 81 percent chance of a rate hike next week. The FOMC will kick off its two-day monetary policy meeting on March 14.
Economic news on Friday included Markit services PMI for February, which came in below expectations at 53.8 points vs 53.9 estimated. The Institute of Supply Management also reported an upbeat non-manufacturing PMI at 57.6 points from a previous 56.5.
Monday will be a light day for data, although later this week markets will count on a few key reports, including US trade balance for January on Tuesday, initial jobless claims on Thursday and the latest read on nonfarm payrolls on Friday.

Fort Financial Services