The Market Brief
Hey team. U.S. futures struggled for direction as the market’s momentum showed signs of fatigue in anticipation of this week’s inflation data.
Let’s recap last week’s events and see what’s next!
Macro Viewpoint
U.S. stock futures edged slightly lower on Monday, following three consecutive weekly gains for the S&P 500 and Nasdaq. Investors are now focused on key inflation data scheduled for release later this week.
On Friday, the S&P 500 and Nasdaq set fresh record highs after a stronger-than-expected November jobs report. While the data showed solid growth, it wasn’t strong enough to undermine market expectations that the Federal Reserve will cut interest rates at its December meeting.
Markets are currently pricing in an 85% probability of a quarter-point rate cut at the Fed’s December 18 decision.
This week, all eyes will be on U.S. inflation data, which could play a critical role in shaping the Fed's rate decision. Economists anticipate inflation will remain elevated, consistent with recent robust payroll figures.
