Market Outlook: Futures Hover Near All-Time Highs Ahead of Key Jobs Data
As investors await fresh jobs data and insights from Federal Reserve officials, US stock futures are trading near record highs. The S&P 500 and Nasdaq 100 futures are hovering around the flatline, while Dow Jones Industrial Average futures are trading broadly flat.
Jobs Data Takes Center Stage
The first key data point this week is the JOLTS job openings report for October, which will set the tone for the rest of the week’s economic releases, culminating in Friday’s crucial monthly US payrolls report. Investors are keenly watching for signs of a soft landing for the economy, which will significantly influence interest-rate expectations.
FedWatch: Rate Cut Odds Rise
Following hints from Federal Reserve officials that they are still open to a December rate cut, traders are now pricing in a 73% chance of a quarter percentage point rate reduction at the December 18 meeting, up from 62% a day ago. Fed policymakers Austan Goolsbee and Adriana Kugler are set to appear later today, ahead of Fed Chair Jerome Powell’s panel discussion on Wednesday.
Corporate News: Tesla and US Steel in Focus
Tesla’s stock slipped in pre-market trading after shipments of its China-built models fell again, casting doubt on sales targets. Additionally, CEO Elon Musk’s $56 billion pay deal was rejected by a judge. Meanwhile, shares in US Steel plummeted over 8% after President-elect Donald Trump vowed to “block” its $15 billion takeover by Japan’s Nippon Steel.
Global Economic Developments
Political turmoil in France is also grabbing market attention, with the government on the brink of collapse ahead of a parliamentary vote. Germany is set for a snap election after a government breakdown, and Wall Street is keeping a close eye on these two pillars of the EU.
Economic Calendar
Today’s economic data includes job openings for October, while earnings reports are expected from Box, Marvell, Okta, Pure Storage, and Salesforce.
Overnight News
Some of the biggest stories that may have flown under the radar include China banning exports of certain metals to the US, BlackRock’s $12 billion deal with HPS, and SpaceX weighing a tender offer at a roughly $350 billion valuation.
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