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US stock futures edge higher ahead of key Fed meeting
Peter Nurse
Author
Peter Nurse
Published 12/15/2024, 07:03 PM
Updated 12/16/2024, 06:14 AM
US stock futures edge higher ahead of key Fed meeting
© Reuters.
US500
0.00%
DJI
-0.20%
NVDA
-2.25%
1YMH25
0.09%
NQH25
0.26%
AVGO
24.43%
IXIC
0.12%
Investing.com -- US stocks edged higher Monday, with trading ranges small ahead of the last Federal Reserve policy meeting of the year.
At 06:10 ET (11:10 GMT), Dow Jones Futures were 50 points higher, or 0.1%, S&P 500 Futures gained 8 points, or 0.1%, and Nasdaq 100 Futures climbed 55 points, or 0.3%.
Futures were muted after a largely middling Friday session on Wall Street, as recent economic data showed inflation remaining sticky in November- a trend that could limit the Fed’s plans to lower interest rates.
Fed rate cut on tap, 2025 outlook in focus
The Fed is widely expected to cut interest rates by 25 basis points at the conclusion of a two-day meeting on Wednesday, after the central bank kicked off an easing cycle earlier in the year.
The move will bring rates down by a total of 100 bps in 2024.
But focus this week will be squarely on the central bank’s plans for future easing, especially in the face of potentially sticky inflation and resilience in the labor market.
Analysts broadly expected the central bank to signal a slower pace of rate cuts in the coming year, with recent comments from Fed officials also suggesting as much.
Traders were seen pricing in a 79.7% chance the Fed will leave rates unchanged when it meets in January, CME Fedwatch showed.
MicroStrategy in spotlight
On the corporate side, MicroStrategy (NASDAQ:MSTR) is likely to be in the spotlight after it was announced as a new addition to the Nasdaq 100 index.
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Capri Holdings (NYSE:CPRI) shares rose sharply in premarket trading on Monday after Women’s Wear Daily reported that the company is exploring potential buyers for its Versace and Jimmy Choo brands, working with Barclays (LON:BARC) to facilitate the process.
While discussions are in the early stages, it remains unclear whether the two brands will be sold together, separately, or at all.
Crude slips on Chinese disappointment
Crude prices retreated Monday, handing back some of the previous week’s gains after the release of disappointing Chinese economic data and ahead of the latest Federal Reserve policy meeting.
By 06:10 ET, the US crude futures (WTI) dropped 1.6% to $70.14 a barrel, while the Brent contract fell 0.9% to $73.82 a barrel.
Both contracts recorded stellar gains last week, bolstered by new European Union sanctions on Russian oil and expectations of tighter sanctions on Iranian supply.
However, concerns over sluggish demand have limited the gains, particularly from China, the world’s largest crude importer.
(Ambar Warrick contributed to this article.)
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