On Monday, U.S. stock futures experienced a slight downturn following the S&P 500 and Nasdaq Composite’s third consecutive week of gains. Investors are anticipating significant inflation reports this week. Nasdaq futures decreased by 0.2%, while S&P 500 futures saw a minor drop of 0.05%.
In contrast, Dow futures rose by 47 points, translating to a 0.1% increase. In pre-market trading, shares of Nvidia fell after a Chinese regulatory body announced an investigation for potentially breaching the nation’s antitrust laws. The previous week, the S&P 500 and Nasdaq posted impressive gains of 1% and 3.3%, respectively.
On the other hand, the Dow closed the week down by 0.6%. These fluctuations were driven by unexpectedly strong growth data, which fueled investor expectations that the Federal Reserve might opt to reduce interest rates this month. The market is currently factoring in an 85% probability of a quarter-point rate cut following the Fed’s meeting on December 18.
“Everything else is functioning precisely as the Fed intends,” remarked Wharton School finance expert Jeremy Siegel during “Closing Bell” on Friday. “I predict we will witness one rate cut at the meeting on December 18, but only two or three cuts throughout next year. This upward momentum could endure.”
The Fed is currently in a quiet phase before its policy-setting gathering, with important inflation data still forthcoming.
S&P 500 futures experience a slight decline
The November consumer price index, which is set to be released on Wednesday, is anticipated to indicate a 0.3% increase for the month and a 2.7% rise year-over-year, an uptick from the previous month’s figures of 0.2% and 2.6%, respectively. Additionally, on Monday, market participants are looking forward to the release of October wholesale inventories data at 10 a.m. ET.
Canaccord Genuity has observed mixed signals in the market rally from last week. Analyst Michael Welch mentioned in a Monday note: “Our short-term indicators reveal a decline in SPX breadth, along with a rise in market complacency. At the same time, our two intermediate-term indicators exhibited contrasting trends; the market’s overbought condition worsened while our sentiment gauge retraced.”
Several stocks are making moves before the market opens on Monday:
– Nvidia: Shares declined by 2% in response to a Chinese regulator’s announcement of an antitrust investigation.
– Palantir Technologies: Its shares increased by over 6% after the firm renewed its contract with the U.S. Special Operations Command, valued at nearly $37 million. Bank of America projects further growth for Ralph Lauren, pointing to a strong consumer base. Analyst Christopher Nardone maintained his buy rating for the stock, raising his price target from $255 to $267, suggesting roughly 18% upside based on Friday’s close.
Nardone emphasized the strength of the company’s brand along with the potential for additional margin growth. In other global market updates:
– Hong Kong: Markets surged nearly 3% following China’s announcement of additional stimulus measures and relaxation of policies. – European Markets: Opened positively on Monday, with the pan-European Stoxx 600 up by 0.33%, driven by a 1.5% gain in mining stocks.
With the markets showing mixed signals and crucial inflation information on the way, investors remain both cautious and hopeful. Major indices have demonstrated a general upward movement, while particular stocks react to regulatory announcements and earnings releases.
