The Market Brief
Hey team. U.S. stock futures edged higher but lacked momentum as traders awaiting new signals on economic growth and the future trajectory of interest rates.
Let’s re-cap Friday’s session and see what’s coming next!
Macro Viewpoint
U.S. stock futures were mixed on Monday as investors anticipated key corporate earnings, with a particular focus on Nvidia, following last week’s significant declines on Wall Street.
Indexes fell sharply on Friday amid rising expectations that the Federal Reserve will slow the pace of rate cuts and uncertainty surrounding President-elect Donald Trump's cabinet appointments.
The early post-election rally has begun to lose momentum, as initial optimism over Trump’s pro-business agenda is giving way to concerns about the inflationary impact of his policies and the future trajectory of Fed interest rates.
Despite this, Wall Street remains in relatively strong shape heading toward year-end. The benchmark index is up nearly 3% for November and has gained 23% so far this year, buoyed by solid economic data, the presidential election, and generally robust corporate earnings that have driven stocks to record highs.
The economic calendar for this week is relatively light compared to the previous one. However, Nvidia’s third-quarter earnings report on Wednesday will be a key event, as investors evaluate whether the AI-driven optimism that has fuelled a significant tech rally can be sustained.
