US stock futures remain stable as PCE inflation is the main concern

U.S. stock index futures remained stable on Tuesday evening following a positive day on Wall Street. Investor attention shifted toward upcoming inflation data, which is expected to influence the Federal Reserve's interest rate outlook.

Futures steadied after a strong session, buoyed by gains in technology stocks, which offset concerns about heightened import tariffs under President-elect Donald Trump. Trump reiterated threats to impose additional tariffs on China, Canada, and Mexico.

Meanwhile, Federal Reserve minutes from its November meeting revealed divisions among policymakers regarding future rate cuts, adding to the mixed outlook on U.S. interest rates.

By 18:17 ET (23:17 GMT), S&P 500 Futures gained 0.1% to reach 6,041.50 points, Nasdaq 100 Futures hovered at 20,989.25 points, and Dow Jones Futures climbed 0.1% to 44,986.0 points. Trading volumes are expected to taper off for the rest of the week due to the Thanksgiving holiday on Thursday.

PCE Inflation Data in Focus for Rate Projections
The spotlight on Wednesday is on October's Personal Consumption Expenditures (PCE) price index, set to release at 10:00 AM ET (03:00 GMT).

As the Federal Reserve's preferred measure of inflation, the PCE index is expected to influence decisions on future rate adjustments. Core PCE inflation, which excludes volatile items, is anticipated to have remained elevated in October, surpassing the Fed’s 2% annual target.

Persistent inflationary pressures have cast doubt on the likelihood of significant interest rate cuts. Market sentiment on the potential for a 25-basis-point rate cut in December has also weakened. These concerns were echoed in the Fed’s early-November meeting minutes, which recommended a cautious approach to further easing.

Technology Stocks Propel Wall Street Gains Despite Tariff Concerns
Strong performance in leading technology stocks helped Wall Street indexes hit record highs on Tuesday, shrugging off concerns about Trump’s tariff threats.

The S&P 500 climbed 0.6% to a record 19,172.81 points, while the Dow Jones Industrial Average added 0.3% to close at 44,860.31 points. The NASDAQ Composite rose 0.6% to end just shy of recent peaks at 19,172.81 points.

Among the "Magnificent Seven" tech giants, five saw gains. Amazon.com Inc. (NASDAQ:AMZN) surged over 3% following reports from Bloomberg that the company is developing custom AI chips to reduce reliance on NVIDIA Corporation (NASDAQ:NVDA).

After-Hours Movers: HP, Dell Decline
In post-market trading, HP Inc. (NYSE:HPQ) dropped 7.2% after issuing weaker-than-expected guidance for 2025. Dell Technologies Inc. (NYSE:DELL) also fell sharply, sliding 10% after its quarterly revenue missed expectations.

Autodesk Inc. (NASDAQ:ADSK) lost nearly 10% despite beating earnings estimates, while Workday Inc. (NASDAQ:WDAY) fell 8% following disappointing future guidance.

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.