Stock futures are little changed as traders look ahead to Fed decision, inflation data: Live updates

Traders are anticipating the Federal Reserve's interest rate decision and May inflation data this week. They will be closely watching the Fed's updated projections on the timing and frequency of rate cuts. Currently, markets are pricing in just one rate cut this year, expected in November, according to the CME FedWatch tool. The decision comes after Friday's strong jobs report, which continued to suggest that the central bank could hold off on lowering rates.

The upcoming Federal Reserve rate decision and May inflation data are expected to have significant implications on the stock market. Investors are closely watching these events as they could impact the direction of the market.

The Federal Reserve's interest rate decision, due on June 12, is expected to provide insights into the central bank's monetary policy stance. Markets are currently pricing in a 99.1% chance that the Fed will maintain interest rates at current levels, with only a 0.9% chance of a 25 basis point rate hike in June, according to CME Group. The bond market is also pricing in a 47.6% chance that the FOMC will issue its first interest rate cut of the year at its September meeting.

As for the May inflation data, which is set to release on June 12, economists polled by Dow Jones expect a rise of 3.4% from the year-ago period and a 0.1% increase on a monthly basis. Core CPI, which excludes volatile food and energy prices, is expected to show an increase of 3.5% year over year and a 0.3% gain on the month.

These upcoming economic events could potentially affect investor sentiment and market volatility. The Fed's decision on interest rates and its assessment of the economy can impact the cost of borrowing, the value of assets, and the direction of the U.S. dollar. Meanwhile, inflation data can influence the market's expectations for future rate hikes or cuts.

Investors will be parsing through the Fed's updated projections on the timing and frequency of rate cuts. Markets are now pricing in just one rate cut this year, coming in November, according to the CME FedWatch tool.

Overall, the upcoming Federal Reserve rate decision and May inflation data are expected to be key tests for the markets, especially after the strong jobs report suggested that the central bank could hold off on lowering rates.