U.S. stock futures traded in the green ahead of the key November consumer price inflation report due before the market opens. A milder reading may kickstart a pre-Fed day rally, as investors hope the central bank will tone down its hawkish stance. Higher interest rates are blamed for the challenges companies are facing, and the Fed’s signal that it is ready to begin cutting rates in the first half of 2024 could boost traders’ risk appetite.
Corporate updates for the day have largely been negative, potentially triggering a sell-off in the respective sectors.
Cues From Monday’s Trading:
The resilient market weathered a bout of profit-taking and ended Monday’s session higher. The gains reflected investors’ optimism about positive outcomes for key economic catalysts due later in the week. The major averages opened on a mixed note and moved lacklusterly in the morning session. They decisively rose in the afternoon, closing higher for the day.
The averages rose for a third straight session, with the Dow Industrials ending at nearly a two-year high, and the S&P 500 Index and the Nasdaq Composite at their highest levels since March 2022 and early February 2022, respectively.
The buying was broad-based, with only communication services stocks coming under selling pressure.
US Index Performance On Monday
| Index | Performance (+/-) | Value |
| Nasdaq Composite | +0.20% | 14,432.49 |
| S&P 500 Index | +0.39% | 4,622.44 |
| Dow Industrials | +0.43% | 36,404.93 |
| Russell 2000 | +0.15% | 1,883.68 |
Analyst Color:
Analysts see this week as critical for the market. “After we get past CPI and PPI and the Fed without any surprises, we should have smooth sailing into year-end, with the soft landing narrative very well intact,” fund manager Louis Navellier said in a note.
Futures Today
Futures Performance On Tuesday
| Futures | Performance (+/-) |
| Nasdaq 100 | +0.14% |
| S&P 500 | +0.04% |
| Dow | +0.14% |
| R2K | +0.20% |
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.04% to $462.18 and the Invesco QQQ ETF (NASDAQ:QQQ) gained 0.16% to $396.15, according to Benzinga Pro data.
Upcoming Economic Data:
A 2-day Federal Open Market Committee meeting kickstarts on Tuesday.
The Bureau of Labor Analysis is scheduled to release…
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