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U.S. stock index futures advanced slightly on Monday as Wall Street reacted to signs of easing inflation, kicking off a shortened trading week ahead of the Christmas holiday.
- Dow Jones Futures: +5 points (+0.1%)
- S&P 500 Futures: +10 points (+0.2%)
- Nasdaq 100 Futures: +60 points (+0.3%)
Markets will close early Tuesday for Christmas Eve and remain shut on Christmas Day.
Investors Weigh PCE Inflation Data
The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, rose 0.1% in November, compared to October’s 0.2%.
- Annual PCE inflation slowed to 2.4%, slightly below estimates of 2.5% but still above the Fed’s 2% target.
- Fed officials emphasized the need for continued progress on inflation before further monetary policy adjustments, with lingering concerns over fiscal policy uncertainties, such as tariffs.
The Fed recently cut rates by 25 basis points but reduced its 2025 rate-cut forecast from four to two cuts, citing policy uncertainty under the incoming Donald Trump administration.
Wall Street Volatility and December Performance
Recent weeks have been volatile for Wall Street:
- The Dow Jones Industrial Average (DJIA) experienced a 10-day losing streak, the longest since 1974, dropping over 1,000 points last Wednesday.
- Month-to-date, the DJIA is down 4.6%, while the S&P 500 has lost 1.7%.
- In contrast, the Nasdaq Composite has risen 1.8% in December, buoyed by strength in the tech sector.
Market analysts expect heightened volatility in January as Donald Trump prepares to retake office, potentially creating new investment opportunities.
Corporate News: Rumble Surges
Rumble Inc. (NASDAQ:RUM) saw its stock surge over 45% in premarket trade following a $775 million investment from Tether, the company behind the USDT stablecoin.
This investment underscores growing ties between the crypto and tech sectors as digital asset companies seek to diversify their portfolios.
Crude Oil Holds Steady
Oil prices stabilized on Monday as inflation data eased concerns about aggressive monetary tightening, while a U.S. government shutdown was averted.
- WTI Crude Futures: Down 0.3% to $69.23 per barrel
- Brent Crude Futures: Down 0.4% to $72.34 per barrel
President Joe Biden’s approval of a stop-gap funding bill over the weekend reassured markets, easing fears of travel disruptions and weak fuel demand during the holiday season.
However, both oil benchmarks remain under pressure:
- Last Week’s Losses: Both WTI and Brent fell over 2% amid concerns about slowing global economic growth and weaker oil demand.
Looking ahead, oil markets may gain support from the Fed’s cautious stance on interest rates and potential improvements in economic activity.
