US stock futures rise with inflation, Fed cues in focus

U.S. stock index futures rose in evening deals on Sunday with focus turning to upcoming inflation data and a slew of Federal Reserve speakers for more signals on whether Wall Street will extend its recent rally. 

Wall Street was on a tear in the second half of last week after Donald Trump won the 2024 presidential election, clearing out a major point of uncertainty for markets. An interest rate cut by the Fed also boosted risk sentiment.

S&P 500 Futures rose 0.2% to 6,037.25 points, while Nasdaq 100 Futures rose 0.4% to 21,306.0 points by 18:44 ET (23:44 GMT). Dow Jones Futures rose 0.1% to 44,186.0 points. 

Still, trading volumes are expected to be limited Monday (NASDAQ:MNDY ) 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.  Wall St on a tear after Trump election victory 

Futures rose after Wall Street clocked a series of record highs, as markets cheered a Trump victory. The president-elect has vowed to cut corporate taxes and dole out more expansionary policies, which bode well for corporate earnings. 

The Republican party is also headed for a majority in both levels of Congress, which presents a clear path for Trump to enact any major policy changes.

The S&P 500 rose 0.4% to 5,995.54 points on Friday. The Dow Jones Industrial Average rose 0.6% to 43,988.99 points, while the NASDAQ Composite rose 0.1% to 19,286.78 points.

All three indexes logged a series of record highs last week.

Source: Investing.com