US stock futures pointed higher on Monday as investors assessed the staying power of a post-election rally and looked ahead to fresh economic data this week. The benchmark S&P 500 hit a fresh all-time peak and touched the 6,000 level for the first time on Friday, boosted by hopes that Donald Trump would roll out tax cuts and extensive deregulation during his second four-year term in the White House.

Unleashing the Power of Optimism: Stocks Surge Amid Economic Shifts

Futures Climb as Investors Anticipate Economic Insights

By 03:20 ET (08:20 GMT), the Dow futures contract had added 82 points or 0.2%, S&P 500 futures had jumped by 15 points or 0.3%, and Nasdaq 100 futures had gained 73 points or 0.4%. This upward momentum reflects the market's optimism as investors eagerly await the release of key economic data this week. The Federal Reserve's recent interest rate cut and the prospect of further policy adjustments have also contributed to the positive sentiment, with policymakers noting the economy's "solid pace" despite some easing in labor demand and elevated inflation.

Inflation Data: A Crucial Indicator for the Fed's Next Moves

The release of October inflation data from the Department of Labor on Wednesday will be a major focus for investors, as it will likely shape the Federal Reserve's future interest rate decisions. Economists expect the consumer price index to have risen at an annual rate of 2.4% last month, matching September's pace. The central bank's approach to interest rates will be heavily influenced by the outlook for US price pressures, as it navigates the delicate balance between supporting economic growth and managing inflationary risks.

Cryptocurrency Surge: Bitcoin Reaches New Heights

Bitcoin rose to a record high, extending a rally from last week as optimism around the outlook for cryptocurrencies was heightened by Trump's victory. The world's largest cryptocurrency hit a peak of $81,792.4, and traded at $81,165.3 by 03:21 ET. Traders are betting that the Trump administration and a raft of new pro-crypto lawmakers in Congress will take a more favorable approach to the industry, potentially easing regulatory burdens and creating a reserve to hold the country's Bitcoin supply. The prospect of a softer stance from the Securities and Exchange Commission has also fueled the cryptocurrency's surge.

Chinese Stimulus Measures Fail to Impress Investors

Stocks in Hong Kong led declines in Asia on Monday, as fresh fiscal stimulus measures out of China largely underwhelmed investors. Hong Kong's Hang Seng index slid 1.7%, while China's Shanghai Shenzhen CSI 300 and Shanghai Composite were more volatile, rising by 0.7% and 0.6%, respectively. The National People's Congress announced a debt swap program worth about 10 trillion yuan ($1.4 trillion) aimed at improving the finances of local governments, but the lack of direct fiscal stimulus and targeted policies to bolster China's ailing housing market and tepid personal consumption fell short of investor expectations.

Oil Prices Remain Stable Amid Shifting Dynamics

Oil prices steadied on Monday as traders digested the latest stimulus plan from top importer China as well as the easing of any supply disruptions from Hurricane Rafael. By 03:22 ET, the Brent contract gained 0.2% to $73.99 a barrel, while U.S. crude futures (WTI) were mostly unchanged at $70.39 per barrel. Prices weakened on Friday after Beijing approved the measures, which were designed to lower government debt levels. Meanwhile, fears over immediate disruptions in US oil output were somewhat soothed after Hurricane Rafael weakened into a tropical storm as it made landfall in Cuba.