U.S. stock futures were little changed on Sunday night, as investors were in a risk-off mood after a rough week. The Dow Jones Industrial Average futures were down 34 points, or 0.07%, and S&P 500 futures were down 0.04%. Likewise, Nasdaq 100 futures dipped by around 0.15%. The Dow Jones Industrial Average recently closed at an all-time high! The S&P 500 followed suit, underscoring the powerful and broad-market performance we’ve seen over the last few sessions.
Inspite of the small-ish drops in futures, the small-cap Russell 2000 blasted up 2.2% for its 7th straight winning week. This recent increase is a sign of renewed confidence in our nation’s small businesses, who typically thrive when the economy is strong. Market analysts have recently noted that this performance paves the way for two more quarter-point Fed interest rate cuts. This outlook is borne out by the CME FedWatch Tool, which monitors the markets’ expectations.
Turning to economic releases, next week is a big one, with several key indicators to be released. That’s even with the most recent personal consumption expenditures price index (PCE), which the Fed prefers as an inflation gauge. Fewer impacts— Analysts are looking for this report to show continued elevated pricing pressures—which could have implications for monetary policy going forward.
Geopolitical developments are high on the list of what market watchers are watching for. Recently, President Donald Trump mentioned that conservative media baron Rupert Murdoch and his son Lachlan might play a role in negotiations to save TikTok’s operations in the United States. This new potential involvement would be significant both for the social media landscape and for regulatory oversight efforts.
Emmanuel Cau, a market strategist, commented on the current market dynamics, stating, “With equities near the highs and rates markets still pricing in [roughly] 5x additional cuts over the next year, further support for equities will hinge more on robust incoming macro data than on more dovishness in rates, in our view.” Implications The reaction to this unexpected data underscores how critical the next economic indicators will be in determining market sentiment.