U.S. Stock Futures Slip Lower

U.S. stock futures experienced a decline on Monday, impacted by profit-taking as 2024 draws to a close.

By 06:25 ET (11:25 GMT):
– Dow Futures: down 55 points (0.1%)
– S&P 500 Futures: down 9 points (0.2%)
– Nasdaq 100 Futures: down 34 points (0.2%)

As 2024 ends, major averages are nearing record levels. The S&P 500 and Dow Jones Industrial Average have risen over 25% and 14%, respectively, on track for their best year since 2021. The NASDAQ Composite has increased by more than 31%.

Additionally, the benchmarks are poised for a winning fourth quarter, benefitting from Donald Trump’s election win. The Nasdaq is heading for its longest quarterly winning streak since Q2 2021.

Fed to Cut in March – Goldman

The economic data for Monday includes pending home sales for November and December’s Chicago PMI. Market activity is expected to be limited due to the market closure on Wednesday.

Goldman Sachs forecasts that the Federal Reserve will implement a 25 basis point interest rate cut in March 2025, followed by two additional cuts in June and September.

Goldman's note stated, "We expect the Fed to deliver its next 25bp cut in March followed by two more 25bp cuts in June and September to a terminal rate range of 3.5-3.75%." They also predict a slowdown in the Fed's balance sheet runoff starting January 2025, halting it entirely by Q2.

Boeing Slumps After South Korea Crash

Boeing (NYSE:BA) shares fell over 4% in premarket trading following a tragic air accident in South Korea that resulted in 179 fatalities. A Boeing 737-800 crash-landed at Muan International Airport, skidded off the runway, collided with a wall, and caught fire, marking the deadliest aviation disaster in the nation's history.

Crude Heads for Annual Losses

Crude prices dipped slightly on Monday amid low holiday trading volume as the final week of the year commences.

As of 06:25 ET, US crude futures (WTI) fell 0.1% to $70.51 a barrel, while Brent oil dropped 0.2% to $73.67 a barrel. Both benchmarks are projected to incur significant losses for 2024, with WTI down approximately 1.5% and Brent over 4%, primarily due to concerns regarding weakening demand in China, the world’s leading oil importer.