US stock futures steady after record-high run; CPI awaited

U.S. stock index futures steadied in evening deals on Monday after Wall Street hit a series of record highs on optimism over Donald Trump’s election victory, with focus now turning to upcoming inflation data this week.

Futures steadied as a rally on Wall Street now appeared to be slowing, although benchmark indexes still eked out record highs. Wall Street has been on a tear after Trump’s victory in the 2024 presidential election last week.

S&P 500 Futures fell slightly to 6,028.00 points, while Nasdaq 100 Futures steadied at 21,208.75 points by 18:41 ET (23:41 GMT). Dow Jones Futures fell 0.1% to 44,394.0 points. 

Trading volumes were slower on Monday on account of the Veterans Day holiday.  CPI data, Fedspeak awaited 

Wall Street’s rally now appeared to be cooling as investors grew wary before key consumer price index inflation data due on Wednesday.

Inflation is expected to have remained steady in October from the prior month amid continued resilience in the U.S. economy. But sticky inflation stands to potentially delay the Federal Reserve’s plans to cut interest rates further. 

The Fed had cut rates by 25 basis points last week, and reiterated that it would maintain a data-driven approach to further easing. 

Recent signs of sticky inflation spurred some doubts over just how much further interest rates will fall. Traders were seen pricing in a 70.7% chance for another 25 bps cut in December, and a 29.3% chance rates will remain unchanged, CME Fedwatch showed.

Beyond the CPI data, focus this week is also on addresses from a slew of Fed officials for more insight into the central bank’s plans for rates.

Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin are set to speak on Tuesday.  Wall St steadies as Trump rally cools 

Wall Street indexes still eked out record highs on Monday. But their pace of gains now appeared to be cooling, as investors sought more insight into what a second Trump presidency will entail for the economy. 

Trump is widely expected to enact more protectionist policies, especially in trade and immigration. Analysts warned that these could push up inflation in the long term, keeping interest rates relatively high. 

The S&P 500 rose 0.1% to 6,001.35 points on Monday, closing above 6,000 points for the first time ever. The NASDAQ Composite rose 0.1% to 19,303.57 points, while the Dow Jones Industrial Average rose 0.7% to 44,293.13 points. 

The Dow benefited greatly from positioning in economically sensitive sectors, as investors looked to more expansionary policies from Trump. 

Source: Investing.com