US Stocks Edge Lower Ahead of Crucial Inflation Data That Could Sway Fed Rate Cut Timing

• US equity futures slipped ahead of Tuesday's consumer price index report, a key indicator of inflation that will test market optimism about Fed rate cuts.

• Further moderation in US prices would support the narrative of disinflation and the case for the Fed to start cutting rates mid-year.

• Comments from Fed and ECB policymakers last week appeared dovish, supporting expectations of rate cuts beginning in June.

• Exuberant positioning, stretched technicals and shaky earnings forecasts remain arguments for market bears.

• The dollar index fell for a 7th straight day, its longest losing streak in 4 years, on mounting speculation of the end of negative rates in Japan.