US stock futures hovered near the flatline Monday night as Wall Street looked to build on a broad tech-led rebound amid growing optimism that the Federal Reserve may deliver a rate cut next month.
Futures linked to the Dow Jones Industrial Average (YM=F) ticked down 0.1%, while contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) wavered below the baseline.
Monday’s session delivered a strong start to the holiday-shortened week. The S&P 500 (^GSPC) jumped almost 1.6%, while the Nasdaq Composite (^IXIC) surged 2.7% as megacap tech snapped back from a bruising stretch. But even with Monday’s bounce, major indexes are still pacing toward monthly losses as investors reassess sky-high valuations in AI and growth stocks.
Traders are keeping close watch on the Fed. Markets now assign an 80%-plus probability to a quarter-point rate cut in December. Rate-cut expectations jumped after New York Fed President John Williams signaled last week that cuts could come in the “near term,” and Fed governor Chris Waller added fuel to that fire on Monday.
Delayed economic data releases start to see the light of day this week. On Tuesday, markets get September updates on producer prices and retail sales, plus a November reading of consumer confidence, among other data.
On the earnings front, Alibaba (BABA), and retailers Kohl’s (KSS) and Best Buy (BBY) are the highlights in the holiday-shortened week. US markets will be closed Thursday for Thanksgiving and will operate on a reduced schedule Friday, shutting at 1 p.m. ET.
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