HomeBusinessFutures fall at the start of a data-packed week

Futures fall at the start of a data-packed week

(Reuters) – U.S. stock index futures started lower in December after posting robust gains last month, highlighted by a set of economic data later this week, including a jobs report, to gauge the Federal Reserve’s interest rate path.

This week’s centerpiece would be the November nonfarm payrolls report, due Friday, a key metric for gauging the state of the labor market as well.

Traders currently see a more than 61% chance that the Fed will opt for a 25 basis point rate cut when it meets later this month, compared to a nearly 83% chance a month earlier, according to CME’s FedWatch Tool.

A vacancy opening readout for October is expected to be published on Tuesday, while private payroll data for November will be released on Wednesday.

The S&P 500 and the blue-chip Dow hit record highs on Friday, capping off a banner November for U.S. stocks.

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Investors enjoyed US stocks last month after Republican candidate Donald Trump retook the White House, along with his party capturing both houses of Congress.

Trump’s policies on tax cuts, tariffs and deregulation could lead to better business performance. However, concerns that his policies could push up inflation have also led markets to abandon hopes that the Fed would accelerate the rate easing cycle.

The week is also packed with data that can indicate how the economy is doing, including multiple surveys of economic activity over the past month.

The November manufacturing activity surveys from S&P Global and the Institute for Supply Management (ISM) are expected later today.

A series of Fed speakers will also make public appearances this week, including Fed Chairman Jerome Powell, as investors look for clues about the central bank’s policy trajectory.

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Comments from Fed Governor Christopher Waller and New York Fed President John Williams were expected to appear on the radar later in the day.

On the day, most mega-cap and growth stocks were slightly lower, with Nvidia’s 1.6% decline leading losses. Tesla, on the other hand, performed better with an advance of 1.7%.

At 5:06 a.m. (ET), the Dow E-minis were up 54 points, or 0.12%, the S&P 500 E-minis were up 12.75 points, or 0.21%, and the Nasdaq 100 E-minis, with 48.5 points, or 0.23%.

Among other early premarket moves, Gap rose 3.5% after JP Morgan upgraded the apparel retailer’s rating from “neutral” to “overweight.”

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)

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