U.S. stock futures dipped on Sunday night following a challenging week in the equity market. S&P 500 futures slipped 0.2%, Nasdaq 100 futures slid 0.3%, and Dow Jones Industrial Average futures fell by 52 points or 0.1%. The stock market faced substantial losses as it began its first trading week of September, traditionally a slow month for equities. The S&P 500 tumbled 4.3%, marking its worst week since March 2023. The Nasdaq plunged 5.8%, experiencing its worst weekly performance since 2022, while the Dow dropped 2.9%.

These declines followed the release of the August jobs report, which heightened concerns about a weakening labor market. Economic data released on Friday revealed nonfarm payrolls increased by 130,000, missing the 161,000 anticipated by economists surveyed by Dow Jones. Conversely, the unemployment rate edged down to 4.2%, as expected by economists. This week, investors will be closely monitoring two critical inflation reports that could influence the Federal Reserve's decisions at its upcoming open market committee meeting.

August's consumer price index (CPI) is set for release on Wednesday, followed by the producer price index (PPI) on Thursday morning. The market has now priced in a 71% chance that the Fed might reduce rates by 25 basis points at its next meeting, and only a 29% chance of a 50-basis-point rate cut, according to CME Group's FedWatch tool. However, Vincent Deluard, StoneX's director of global macro strategy, suggests that even a weaker-than-expected CPI or PPI report may not prompt a significant rate cut. "CPI is likely to align with consensus, which won't shift the needle," he told CNBC.

"PPI isn't as critical. Powell wants to cut but is a prudent individual. A 50-basis-point cut in September... Why take the risk?" On Sunday night, stock futures continued to fall. S&P 500 futures dipped 0.1% shortly after 6 p.m. ET, Nasdaq 100 futures lost 0.2%, and Dow Jones Industrial Average futures declined by 59 points, or nearly 0.2%.