US stock futures climb higher; inflation, Fed speakers in focus

U.S. stock index futures rose Monday (NASDAQ:MNDY ), extending its recent rally with the focus turning to upcoming inflation data and a slew of Federal Reserve speakers. 

At 05:35 ET (10:35 GMT), Dow Jones Futures rose 175 points, or 0.4%, S&P 500 Futures rose 21 points, or 0.4%, while Nasdaq 100 Futures rose 55 points, or 0.3%.

The main Wall Street indices were on a tear in the second half of last week after Donald Trump won the 2024 presidential election, and the Republican Party looked set to claim both houses of Congress, which presents a clear path for Trump to enact major policy changes.

The Dow Jones Industrial Average and S&P 500 each climbed more than 4% last week, notching their best weeks since November 2023. The tech-heavy NASDAQ Composite jumped more than 5%. All three finished Friday’s session at all-time closing highs.

Still, trading volumes are expected to be limited this session by the Veterans Day holiday. CPI data, Fed speakers due this week

Focus this week was squarely on upcoming consumer price index inflation data for October, for more signs that inflation is easing. 

The reading comes just a week after the Fed cut interest rates by 25 basis points, and reiterated that future easing will be largely dependent on the path of inflation. This week’s CPI data is expected to factor into the outlook for rates. 

While U.S. inflation did fall earlier in the year, it turned sticky in recent months amid persistent strength in the economy and the labor market. 

Beyond the CPI data, focus this week is also on addresses by a string of Fed officials, who are expected to offer more insight into the central bank’s plans for interest rates.

Traders are betting on a 65.9% chance for a 25 basis point cut in December, and a 34.1% chance that rates will remain unchanged, CME Fedwatch showed.  "Animal spirits" to drive S&P higher 

There is no economic data of note expected Monday, but the quarterly earnings season is set to continue, with results due from the likes of ticketmaster parent Live Nation Entertainment (NYSE:LYV ) and food and facility service provider Aramark (NYSE:ARMK ) during the session.

Evercore ISI expects sharp gains in the coming months, expecting the S&P 500 to hit 6,600 by mid-2025, driven by “animal spirits” ignited by the outcome of the US election.

Trump’s victory in the 47th US election provided the stock market with its largest post-election day gain in more than a century. 

This favorable market reaction is not simply a short-term bounce, Evercore said, but signals the start of a broader "performance chase" that will likely lift the market significantly over the coming months. Crude slips as China disappoints 

Oil prices retreated as traders digested the latest stimulus plan from top importer China as well as the easing of any supply disruptions from Hurricane Rafael.

By 05:35 ET, the Brent contract slipped 1.2% to $72.97 per barrel, while U.S. crude futures (WTI) traded 1.4% lower at $69.40 per barrel.

Prices weakened on Friday after Beijing approved about 10 trillion yuan ($1.4 trillion) in measures aimed at lowering government debt levels. But a lack of targeted measures for private consumption largely left investors wanting more, especially as data over the weekend showed persistent Chinese deflation.

In the U.S., fears of immediate disruptions in production eased as Hurricane Rafael weakened into a tropical storm as it made landfall in Cuba.

(Ambar Warrick contributed to this article.)

 

Source: Investing.com