US stock futures slip lower; caution ahead of key inflation release

Investing.com -- US stock index futures drifted marginally lower Monday as investors consolidated recent gains ahead of the release of key inflation data this week for more cues on interest rates. 

At 05:45 ET (10:45 GMT), Dow Jones Futures were down 30 points, or 0.1%, S&P 500 Futures dropped 8 points, or 0.1%, and Nasdaq 100 Futures fell 45 points, or 0.2%. 

Futures have slipped slightly after Wall Street indexes hit record highs on Friday, where technology stocks continued to push higher as stronger-than-expected nonfarm payrolls data did little to deter bets on a December rate cut.

The S&P 500 and the NASDAQ Composite closed at fresh records Friday, rising around 1% and over 3% for the week, respectively. The Dow Jones Industrial Average lagged behind, closing the week down 0.6%. CPI data awaited for more rate cues 

Investors are starting the new week on a cautious note, with the focus squarely on the November consumer price index , due on Wednesday, for more cues on inflation, the US economy and potential interest rate cuts.

The headline reading is expected to show a 2.7% year-on-year increase, a monthly increase of 0.2%, while core CPI inflation, which excludes volatile food and energy prices, is also expected to have remained significantly above the Federal Reserve's 2% target.

While the central bank is widely expected to cut interest rates by 25 basis points next week, it is also expected to slow its pace of rate cuts in 2025, given the still elevated inflation and a strong labor market.

Data on Friday showed stronger-than-expected growth in nonfarm payrolls in November, but the participation rate shrank, while growth in manufacturing payrolls underwhelmed.  Syria in turmoil 

Investors were waiting to see what a major regime change in Syria will entail for geopolitics in the Middle East, after rebel forces ousted President Bashar al-Assad and took control of Damascus, ending 13 years of civil war. 

Media reports said al-Assad had landed in Moscow, while Israeli forces had entered Syria.  Oracle set to report 

On the corporate side, the quarterly earnings season is gradually drawing to a close, but investors will still be able to study Oracle's (NYSE:ORCL ) results after the close Monday.

Citigroup (NYSE:C ) forecasts the benchmark S&P 500 index to hit 6,500 by the end of 2025 in its base case, from just under 6,100 at Friday's close, driven by a mix of earnings growth, a stable macroeconomic backdrop, and sectoral broadening.

However, the Wall Street firm cautions that the road to this milestone will likely be coupled with elevated market volatility compared to the relatively steady performance in 2024. Crude gains on Syria news 

Crude prices rose Monday, as the overthrow of the Bashar al-Assad regime in Syria introduced greater uncertainty to the oil-rich Middle East, although concerns over weakening demand persisted. 

By 05:45 ET, the US crude futures (WTI) climbed 1.1% to $67.96 a barrel, while the Brent contract rose 0.9% to $71.75 a barrel.

(Ambar Warrick contributed to this article.)

Source: Investing.com