FX.co ★ US Futures Mixed

US equity futures displayed a mixed performance on Monday, following the S&P 500's close near a record high during Friday’s abbreviated session. Market sentiment remains delicate as Wall Street navigates another week affected by holiday trading, with ongoing concerns over a potential AI-driven valuation bubble. Last Friday, declines in chipmakers and certain consumer discretionary stocks counterbalanced an otherwise robust market performance. Investors are now anticipating crucial labor data, including the ADP private payrolls report and the minutes from the Federal Reserve’s December meeting, both of which are expected later this week. Earlier this month, the Fed lowered interest rates but indicated the likelihood of only one more cut by 2026, signaling a cautious approach to inflation risks. In terms of policy changes, this year will see minimum wage increases in 22 U.S. states, with 19 states implementing the hikes starting January 1, highlighted by Hawaii's increase to $16 per hour. On the geopolitical front, attention intensified after Donald Trump announced that discussions with Ukrainian President Volodymyr Zelensky had brought peace negotiations "a lot closer," although significant issues remain unresolved.