FX.co ★ U.S. Futures Point to Lower Wall Street Open Amid Fed Caution

U.S. stock futures experienced a significant decline on Monday, following modest gains seen in thin holiday trading on Wall Street last Friday. Despite this dip, major indexes marked their strongest week since June. However, the Nasdaq concluded November with a loss, its first since March, as concerns about overvalued AI and tech stocks led investors to take profits. Caution has set in among investors, anticipating Federal Reserve Chair Jerome Powell’s upcoming statement, which could provide insight ahead of the policy meeting scheduled for next week. Currently, traders are estimating an 87% likelihood of a rate reduction, driven by a series of dovish remarks from Federal policymakers. Concurrently, Treasury yields have moved toward multi-week lows. Focus is also on initial reports of consumer holiday spending as data from Black Friday and Cyber Monday become available. In other developments, President Donald Trump has announced his selection for the next Federal Reserve chair, with White House economic adviser Kevin Hassett being a prime candidate. Market participants are now looking towards private payroll data and the Personal Consumption Expenditures (PCE) inflation report for additional guidance.