U.S. stock index futures took a breather on Thursday following a positive finish for the S&P 500 and Nasdaq in the previous session. Investors were eagerly anticipating the release of additional economic data throughout the day. The Nasdaq reached a milestone by surpassing the 20,000 mark for the first time on Wednesday, fueled by an unrelenting surge in technology stocks. Meanwhile, the S&P 500 closed at its highest level in nearly a week after an inflation report in line with expectations solidified expectations of a 25 basis point interest rate cut by the Federal Reserve during its upcoming meeting on December 17-18.
Market sentiment reflected a strong likelihood of a rate cut, with over 98% of trader bets now pricing in the move according to CME’s FedWatch Tool. The odds of a cut increased following a recent jobs report that revealed a rise in unemployment despite robust job growth. However, market expectations also hinted at a potential pause in January as some Federal Reserve officials cautioned against rapid monetary policy easing, citing the economy’s resilience.
Scheduled economic releases included a November reading of producer prices and the weekly jobless claims report, both of which were poised to offer insights into the economy’s current state. At 5:25 a.m. ET, Dow E-minis were down 65 points, S&P 500 E-minis were down 9.25 points, and Nasdaq 100 E-minis were down 53 points, signaling a cautious start for Wall Street.
Throughout the year, Wall Street’s major indexes have repeatedly set new record highs, largely driven by the tech sector’s dominance and the impact of the Federal Reserve’s interest rate cuts. The market rally has been fueled by optimism surrounding artificial intelligence and the accommodative monetary policy stance of the Fed.
November was a standout month for U.S. equities, with markets rallying on the back of optimism stemming from President Donald Trump’s re-election and the promise of pro-business policies that could bolster corporate profits. The start of December also showed promise, but analysts warned of potential inflationary risks associated with the incoming administration’s stance on tariffs.
Notable premarket movers included Adobe, which experienced a 10.1% decline after issuing a fiscal 2025 revenue forecast that fell short of Wall Street’s expectations. Likewise, Chewy saw a 3% drop following news of a stock offering by its primary stakeholder aimed at reducing its ownership stake in the pet products retailer.
As the day unfolded, market participants remained vigilant for any updates or developments that could sway sentiment and drive trading activity. The intricate dance between economic data, policy decisions, and corporate performance continued to shape the dynamic landscape of global financial markets, underscoring the importance of staying informed and adaptable in the ever-evolving world of investing.
