On Friday, futures tied to Wall Street's main indexes remained relatively stable. Investors were cautious as they awaited a crucial monthly jobs report, which is expected to play a significant role in determining the Federal Reserve's interest-rate path. U.S. job growth in November was likely to have surged following the disruptions caused by hurricanes and strikes. However, this was not expected to indicate a major change in the easing labor market conditions that the Fed will likely address by cutting interest rates again this month.
Market Strategist's Perspective
Max McKechnie, the global market strategist at J.P. Morgan Asset Management, emphasized that recent Fed speakers have been cautious and have left all options open for December. The decision remains highly uncertain. He further noted that if strong payroll data is reported today, revisions to the Fed's anticipated interest-rate path for next year are almost certain.Data is set to be released at 8:30 a.m., with nonfarm payrolls expected to have increased by 200,000 jobs last month, and the unemployment rate projected to climb to 4.2%, according to a Reuters survey of economists. Traders currently anticipate a nearly 67% chance of the Fed cutting interest rates by 25 basis points when it meets later this month, as per CME's FedWatch Tool.
A preliminary reading of December U.S. consumer sentiment by the University of Michigan will also be made available shortly after markets open. Four Fed officials are scheduled to make public appearances throughout the day, just before the media blackout for the Fed's Dec. 17-18 policy meeting begins on Saturday.
Stock Market Performance
U.S. stocks closed lower in the previous session. UnitedHealth declined significantly, and technology shares gave back some of their gains after a steady increase throughout the week. Despite Thursday's pullback, the S&P 500 and the Nasdaq were on track for their third consecutive weekly gains, while the blue-chip Dow was expected to have minor losses.The three indexes are hovering near record highs, driven by the continuous rally in heavyweight tech stocks. This rally, fueled by the artificial intelligence hype, has led to substantial gains throughout the year. Additionally, President-elect Donald Trump's victory in the Nov. 5 election has provided a recent tailwind for stocks. Analysts believe his policies on tax cuts and looser regulations could support corporate performance.
