U.S. Stock Index Futures Steady Ahead of Key Inflation Data

U.S. stock index futures showed little movement on Sunday evening as investors awaited crucial inflation data for insights on interest rates and remained cautious of rising geopolitical tensions in Syria.

Futures were stable following Wall Street indexes reaching record highs on Friday, driven by tech stocks, as stronger-than-expected nonfarm payrolls did not change expectations for a rate cut in December.

• S&P 500 Futures: 6,098.25 points
• Nasdaq 100 Futures: 21,651.75 points
• Dow Jones Futures: 44,700 points

Investors remained focused on the implications of significant regime changes in Syria, particularly after President Bashar al-Assad was ousted by rebel forces and control of Damascus was established, concluding 13 years of civil war. Reports indicated al-Assad's arrival in Moscow, along with Israeli military activities in Syria.

CPI Data Awaits for More Rate Cues

This week’s spotlight is on the consumer price index (CPI) data set for release on Wednesday, which is vital for understanding U.S. economic conditions and interest rate trajectories. Estimates suggest a 2.7% year-on-year increase in inflation through November.

Additionally, core CPI is anticipated to show persistent inflation, potentially limiting the Federal Reserve's ability to aggressively cut interest rates. Traders expect a 25 basis point cut next week, followed by a slower pace of reductions into 2025 amidst ongoing inflation and robust job growth.

Recent data indicated stronger-than-expected nonfarm payroll growth in November, though there was a slight decline in the participation rate, and the growth in manufacturing payrolls was less encouraging.

Wall Street at Record Highs on Tech Gains

On Friday, Wall Street largely disregarded strong payroll data, as advances in technology stocks—driven by optimism surrounding artificial intelligence—countered losses in other economically sensitive sectors. Markets also sought insights into future policies from President-elect Donald Trump.

• S&P 500: +0.3% to 6,090.27 points
• NASDAQ Composite: +0.8% to 19,859.77 points (both reached record highs)
• Dow Jones Industrial Average: -0.3% to 44,642.52 points