U.S. Stock Index Futures Muted Amid Focus on Jobs Report

(Reuters) – U.S. stock index futures were muted on Tuesday after the S&P and the Nasdaq reached record highs in the previous session. Attention is centered on a key jobs report later this week, alongside further data and commentary from Federal Reserve officials.

Job Openings and Labor Turnover Survey (JOLTS)

October's JOLTS report is scheduled for release at 10:00 a.m. ET, paving the way for the highly anticipated monthly payroll figures on Friday—vital for assessing the Fed's interest rate plans.

Analysts at Societe Generale noted, "The bumpy inflation trajectory since the end of the summer caught the Fed's attention and led markets to aggressively reprice the policy outlook for 2025." They also commented on the uncertainty surrounding whether a terminal rate near 3.75% has been reached.

Currently, traders perceive a greater than 72% chance that the Fed will cut interest rates by 25 basis points during its meeting later this month, according to CME's FedWatch Tool.

Federal Reserve Officials' Comments

Fed Governor Christopher Waller, known for his influence on U.S. monetary policy, indicated on Monday that he is inclined to support another rate cut if inflation continues to forecast a drop to 2%.

New York Fed President John Williams stated late Monday that while it is likely interest rates will decrease over time, he could not confirm what the central bank's next move would be.

On Tuesday, comments from Chicago Fed President Austan Goolsbee and Fed Board Governor Adriana Kugler are anticipated.

Market Performance and Key Players

The Nasdaq and the S&P 500 achieved record closing highs last session, as a tech rally persisted into December following a remarkable November performance for U.S. equities.

Former U.S. President Donald Trump reclaimed the White House in last month’s election, and his Republican Party won both congressional houses, which boosted stock prices in November. Analysts cite Trump’s potential tax cuts and deregulation plans as favorable for stocks, though concerns about tariffs and a global trade war linger.

At 5:08 a.m. ET, Dow E-minis were down 5 points (0.01%), S&P 500 E-minis were up 2.25 points (0.04%), and Nasdaq 100 E-minis were down 3.25 points (0.02%).

Among early movers, Zscaler (NASDAQ:ZS) dropped 7.6% in premarket trading after analysts were underwhelmed by the cybersecurity firm's second-quarter revenue forecast. Tesla (NASDAQ:TSLA) declined 1.3% due to a 4.3% year-on-year drop in sales of China-made electric vehicles, totaling 78,856 in November. U.S. Steel fell 6.8% after Trump reaffirmed his opposition to Nippon Steel's proposed $15 billion purchase of the company.