The Market Brief
Hey team. U.S. stock futures pared back earlier losses after the Federal Reserve’s preferred inflation gauge came in slightly below expectations.
Let’s re-cap yesterday’s session and see what’s next!
Impact Snapshot
🟥 Consumer Sentiment - 10:00am
Macro Viewpoint
U.S. stock index futures edged lower on Friday as investors contended with the dual challenges of a potential government shutdown and the likelihood of prolonged higher interest rates.
November’s personal consumption expenditure data showed muted growth. Core PCE, which excludes volatile food and energy costs, rose just 0.1% from October and 2.8% year-over-year—the slowest monthly increase since May.
The S&P 500 experienced its steepest one-day decline since August on Wednesday after the Federal Reserve surprised markets by hinting at fewer interest rate cuts in 2025 than investors had anticipated.
Stock market volatility has surged in recent days, driven by the Fed’s hawkish shift. This has prompted traders to reassess the sustainability of this year’s tech-driven rally in the face of a higher-rate environment, even as the U.S. economy remains resilient.
