A calm sense of anticipation dominated U.S. stock futures at the start of the week, after major indexes ended their second consecutive week of gains, as investors await the upcoming Federal Reserve meeting, where expectations point to another interest rate cut.
In numerical terms, S&P 500 futures moved slightly near the 6,882 level, Nasdaq 100 futures touched 25,755, while Dow Jones futures stabilized around 47,988 with little change. On a weekly basis, the Dow Jones closed with gains of nearly 0.5%, the S&P 500 added about 0.3%, while the Nasdaq Composite recorded an increase of roughly 0.9%.
Rate-cut expectations were further reinforced as markets increasingly priced in a third consecutive 25-basis-point cut at the Federal Open Market Committee (FOMC) meeting scheduled for December 9–10. Meanwhile, September’s Core Personal Consumption Expenditures (Core PCE) data revealed a clear slowdown in inflation, with a modest monthly rise of 0.2% and an annual increase of 2.8%, both below expectations, reflecting continued easing of inflationary pressures within the U.S. economy.
This slowdown coincided with additional signs of gradual weakness in the labor market and softer consumer spending, granting policymakers broader room to continue supporting the economy through monetary easing tools. Market focus remains firmly on the tone of the Fed’s post-meeting statement, along with its updated economic projections for 2026, which are expected to shape the broader outlook for monetary policy and market direction in the year ahead.
In this context, analysts at ING believe the key issue is not merely the current rate decision, but the signals the Fed will deliver regarding the outlook for next year, particularly with the release of updated forecasts. They expect the scope of easing to remain limited, without a significant expansion toward additional rate cuts in 2026. On the corporate front, markets are also awaiting earnings results this week from major companies including Lululemon, Costco, Broadcom, Oracle, and Adobe figures that are likely to influence near-term market trends.
In a separate development, S&P Global announced that Carvana, CRH, and Comfort Systems USA will be added to the S&P 500 index a move that typically triggers notable repositioning by index tracking funds and may provide short-term momentum to some stocks.
Meanwhile, the U.S. dollar closed its latest session lower for the tenth consecutive day against a basket of major currencies, marking its longest losing streak in more than five decades. This performance reflects a clear shift in market sentiment toward the dollar amid highly sensitive monetary policy developments.
Reports suggesting the potential nomination of Kevin Hassett President Donald Trump’s close economic adviser to succeed Jerome Powell as Fed Chair added further pressure on the greenback. Hassett is widely viewed as a supporter of rapid interest rate cuts aimed at stimulating economic activity, raising fears of a deeper decline in real yields on the dollar.
On the other hand, analysts at Standard Chartered note that several factors could weigh on the dollar over the long term, including labor market cooling, the possible removal of broad-based tariffs, and improving growth outside the United States. Despite these pressures, the bank does not rule out a rebound in dollar strength, supported by productivity gains from technological progress, strong domestic demand, sustained inflation levels, and continued investor preference for real yields.
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