US stock futures fell on Monday ahead of another wave of economic data released this week.
Futures contracts tied to the S&P 500 (^GSPC) fell 0.5% in premarket trading, while futures on the Dow Jones Industrial Average (^DJI) down 0.4%. The tech-heavy Nasdaq Composite (^IXIC) decreased by 0.4%.
Stocks end mixed on Friday as investors digest Job data is hotter than expected. Strong employment growth and strong wage growth are the opposite of what the Federal Reserve wants to see in its fight against inflation. Friday’s data showed demand for workers remained out of balance with supply, signaling to Fed policymakers or higher interest rates. predict in advance or they are higher for longer in limited territory.
Reports from US central bank officials, currently in the midst of a blackout ahead of the meeting, have suggested they will drop to a half point increment at their December 13-14 meeting, after four in a row 75 basis points increase. Investors are now wondering how long the central bank will keep its tightening campaign going, how high the federal funds rate will go, and how long it will stay there before any wave. any cuts.
“Interestingly at this point, the market is focusing exclusively on the very high probability that we will drop to ‘just’ a 50 basis point gain next week and extrapolate that dovishness instead of focus on any risks that closing rates could end up closer, such as 6% vs 5%,” wrote Jim Reid and colleagues at Deutsche Bank in an early morning note. Monday.
Leading the economic calendar for the week are new readings for the producer price index (PPI) — a measure of the prices paid for goods and services before they reach consumers — as well as the purchasing managers index. (PMI) ISM non-manufacturing and consumer sentiment. Meanwhile, another set of third-quarter earnings numbers will be released, wrapping up the reporting season.
Yields on the benchmark 10-year Treasury note rebounded to 3.5% for the first time since September, while oil prices traded higher, with crude oil futures at $81.64 a barrel. On Sunday, OPEC+, or the Organization of the Petroleum Exporting Countries, and its allies, including Russia, continued to cut production. October’s decision was confirmed at a meeting on December 4, prior to the implementation of a $60 price cap on crude oil of Russian origin negotiated by the EU, G7 and Australia.
Tesla (TSLA) stock fell 4% in premarket trading Bloomberg reports that the company plans to cut production at its Shanghai plant, the latest sign of weak demand in China.
Overseas, Asian stocks jumped on Monday after Chinese local governments downgraded some of their strict COVID policies following public protests last week that led to a change large in Beijing’s commitment to a COVID-free policy.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniroromerotv
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