Stock futures exhibited minimal changes on Monday evening as Wall Street geared up for the potential impact of another round of inflation data. Futures linked to the Dow Jones Industrial Average marginally increased by 20 points, equivalent to 0.05%, while S&P 500 futures hovered around the flat line, and Nasdaq 100 futures saw a slight uptick of 0.17%.
The stability in futures follows a day of modest gains on Monday, signaling that the end-of-year rally continues to maintain its momentum. The S&P 500 concluded the session at its highest level since March 2022, and the 30-stock Dow settled at its peak point since January 2022. The Dow, S&P 500, and Nasdaq Composite are all on three-day winning streaks, having secured gains for six consecutive weeks.
Tuesday is poised to test investor optimism with the release of the November Consumer Price Index (CPI) before the market opens. Simultaneously, the Federal Reserve’s final meeting of the year kicks off, introducing additional factors for consideration.
Sameer Samana, Senior Global Market Strategist at the Wells Fargo Investment Institute, expressed caution in a note to clients, stating, “The recent rally is based on hopes that a Goldilocks-type scenario lies ahead. Unfortunately, we believe much of the good news is discounted.”
Earnings reports are expected to play a pivotal role in shaping market sentiment on Tuesday. Tech giant Oracle faced a setback, with shares dropping 7% in extended trading following a fiscal second-quarter revenue miss, falling short of Wall Street expectations.
In the European market, stocks had a lukewarm start to Tuesday’s session. The pan-European Stoxx 600 experienced a 0.1% increase in early trade, with household goods leading gains at 0.6%, while telecoms recorded a 0.9% decline.
On a different note, toy manufacturer Hasbro, known for iconic brands like My Little Pony and Nerf, announced significant layoffs affecting approximately 1,100 employees. The move comes amidst soft sales, expected to persist into 2024, according to CEO Chris Cocks. Hasbro, with around 6,300 workers earlier this year, saw its shares drop more than 5% in after-hours trading.
As financial markets brace for crucial economic data and corporate performances, investors are cautiously navigating the uncertainties, with an eye on sustaining the positive trajectory in the final weeks of the year.