U.S. Stock Index Futures Rise Slightly

U.S. stock index futures rose slightly on Tuesday evening, with attention turning to an upcoming address by Federal Reserve Chair Jerome Powell for more insight on interest rates.

Futures showed optimism after heavyweight technology stocks achieved additional record highs on Wall Street, although the recent rally's pace appeared to be slowing. Uncertainty surrounding interest rates and trade tariffs prompted investors to sell off economically sensitive sectors.

• S&P 500 Futures rose 0.1% to 6,069.50 points.
• Nasdaq 100 Futures climbed 0.3% to 21,333.50 points by 18:49 ET (23:49 GMT).
• Dow Jones Futures increased 0.2% to 44,914.0 points.

Powell's Address Awaits Rate Insights

Fed Chair Jerome Powell is scheduled to speak later on Wednesday, potentially revealing further details on the central bank’s interest rate strategy.

His speech comes just weeks before the Fed’s last meeting of 2024, where a 25 basis points cut is widely anticipated. However, the long-term rate outlook has become uncertain due to signs of persistent inflation. Concerns over protectionist trade policies stemming from President-elect Donald Trump’s potential tariff increases have further contributed to fears of lasting inflation.

Trump has recently threatened higher tariffs against several countries, including the BRICS nations, Canada, and Mexico.

Goldman Sachs analysts noted that tariffs might hinder inflation from meeting the Fed’s 2% target.

This week, attention is also on the nonfarm payrolls data for November, expected on Friday, where investors anticipate a robust reading amid signs of sustained labor market strength.

Wall Street Gains Supported by Tech, But Rally Slows

Wall Street indexes recorded a record high on Tuesday as major technology stocks continued their recent rally, though the speed of these gains now seems to be decelerating due to rising uncertainty about the economic outlook.

• The S&P 500 rose 0.1% to 6,049.88 points, barely reaching a record high.
• The NASDAQ Composite gained 0.4% to 19,478.89 points.
• The Dow Jones Industrial Average fell 0.2% to 44,705.53 points.

Tech stocks benefited from ongoing optimism related to artificial intelligence, which is expected to bolster the sector in the coming months. Anticipation of lower interest rates in the near term also contributed to some gains.

After Donald Trump was elected in 2024, Wall Street experienced sharp increases in November as investors braced for more expansionary policies and potential tax breaks under his administration.