Market Caution Sets In Ahead of Economic Data Releases
As investors await a slew of economic data releases, U.S. stock index futures are trading flat to marginally higher, reflecting a cautious tone in the market. At 5:42 a.m. ET, Dow E-minis are up 32 points, or 0.07%, while S&P 500 E-minis have gained 6.5 points, or 0.11%. Nasdaq 100 E-minis are also up, rising 20.25 points, or 0.09%.
Economic Data Takes Center Stage
Today’s focus will be on the Job Openings and Labor Turnover survey for November and the Institute for Supply Management’s data on services activity for December, both scheduled for release at 10 a.m. ET. The key non-farm payrolls figure, due later in the week, will also be closely watched for signs of continued economic resilience. Any positive indicators could push back expectations on the pace of the Federal Reserve’s monetary easing cycle this year.
Federal Reserve in the Spotlight
The yield on the 10-year Treasury note has risen since early December, trading at 4.6% – near its highest level since May 2024. Market participants expect the central bank to take a dovish stance for the first time this year in June, according to the CME Group’s FedWatch tool. Minutes from the central bank’s December meeting are due on Wednesday, providing further insight into the Fed’s thinking.
Fed Officials Weigh In
Richmond Fed President Thomas Barkin is set to comment on Tuesday, following his colleagues’ warnings about inflation risks and the need to maintain restrictive borrowing costs. As President-elect Donald Trump prepares to take office, his campaign pledges on tax cuts, tariffs, and regulation are being closely scrutinized for their potential impact on the economy and inflation.
Market Reaction to Trump’s Comments
In the previous session, the benchmark S&P 500 and the Nasdaq closed short of one-week highs after Trump denied reports that his team was exploring less aggressive tariff policies. The uncertainty surrounding his plans has left market participants on edge, with analysts warning that his policies could invigorate the economy but also increase upside risk to inflation and slow down the pace of the Fed’s easing cycle.
Premarket Movers
Nvidia is up 1.6% after unveiling new products and partnerships at a major annual tech conference in Las Vegas. Micron Technology has gained 5.4% after Nvidia boss Jensen Huang announced that the chipmaker would provide memory for the AI-bellwether’s GeForce RTX 50 Blackwell family of gaming chips. Self-driving technology maker Aurora Innovation has surged 44.4% after announcing a long-term partnership with Nvidia and Germany’s Continental to deploy driverless trucks at scale.
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