U.S. stock futures exhibited limited changes on Monday as investors were eagerly awaiting the final Federal Reserve meeting of 2023 for any signals regarding potential interest rate cuts.
The futures tied to the Dow Jones Industrial Average experienced a small decline of 10 points, while S&P 500 futures saw a marginal dip of 0.1%, and Nasdaq-100 futures slipped by 0.2%.
Exciting news in the premarket trading session: Macy’s shares soared 18% following the announcement that the retailer had received a buyout offer worth $5.8 billion.
Market expectations suggest that the Federal Reserve will maintain the current fed funds rate within the range of 5.25%-5.5%. In his upcoming press conference on Wednesday, Chair Jerome Powell is likely to reaffirm his commitment to managing inflation. The CME Group’s FedWatch tool currently indicates a 45% probability that the Fed will lower rates by 0.25 percentage points in March.
Ken Mahoney, the CEO of Mahoney Asset Management, shared his perspective last week with CNBC, saying that investors should ideally hope for an extended period of stability at the current levels, enabling the market to adjust to the higher rates experienced over the past year and a half.
Furthermore, investors are eagerly anticipating key inflation data that could significantly impact market movements and influence the Fed’s decisions on potential rate cuts. The November consumer price index is set to be released on Tuesday, while the producer price index is scheduled for publication on Wednesday.
Source (CNBC)
