US stock futures were subdued on Tuesday as investors became cautious ahead of a crucial inflation report that could influence the Federal Reserve’s interest rate decision. The November consumer price index (CPI) data is expected to show a slight increase in headline inflation, with traders betting on another 25 basis point interest rate cut next week at over 86%.
The Fed’s upcoming meeting on December 17-18 will be influenced by this report, which could signal the end of the easing cycle. According to CME’s FedWatch Tool, most traders expect the central bank to pause its monetary policy easing in January.
Despite the cautious mood, US equities started the year on a positive note, with gains in major indexes like the S&P 500 and Nasdaq. The tech-heavy Nasdaq gained 0.13%, while the Dow Jones Industrial Average rose 0.00%. Notable movers included Alphabet, which advanced 2.2%, driven by its strong performance, despite Google’s decline.
Other companies saw significant changes in their stock prices. Oracle dropped 7.9% after missing second-quarter estimates and forecasting third-quarter profit below expectations. C3.ai climbed 7.7% following a revenue forecast boost for fiscal year 2025, while MongoDB slipped 6.3% despite raising its annual results forecast.
Investor sentiment is influenced by the president-elect’s potential policies on tax cuts and regulation changes in the incoming administration, which could boost corporate performance. However, concerns remain as investors gauge inflation expectations ahead of the Fed meeting.
Source: https://finance.yahoo.com/news/futures-stall-investors-await-inflation-105846752.html