Futures markets showed an upbeat trend following gains in heavyweight technology stocks that led to new record highs on Wall Street. However, it became evident that the pace of the recent rally was starting to slow down. Uncertainty surrounding interest rates and trade tariffs prompted investors to sell economically sensitive sectors.

Key Players and Their Movements

S&P 500 Futures witnessed a 0.1% increase, reaching 6,069.50 points. Nasdaq 100 Futures rose by 0.3% to 21,333.50 points by 18:49 ET (23:49 GMT). Dow Jones Futures also showed a 0.2% gain, reaching 44,914.0 points. These movements indicate the volatility and potential shifts in the market.

Jerome Powell's Speech and Its Implications

Fed Chair Jerome Powell is scheduled to speak later on Wednesday, which is likely to provide more insights into the central bank's plans for interest rates. His address comes just before the Fed's final meeting for 2024, where a 25-basis-point cut in interest rates is widely anticipated. However, the long-term outlook for rates has become uncertain, especially in light of recent signs of sticky inflation.The prospect of protectionist trade policies under President-elect Donald Trump, including higher tariffs on various countries like the BRICS bloc, Canada, and Mexico, has sparked concerns about sticky inflation in the long term. Goldman Sachs analysts believe that tariffs will delay inflation from reaching the Fed's 2% target.

Nonfarm Payrolls Data and Market Expectations

This week, attention is also focused on nonfarm payrolls data for November, which is due on Friday. Investors are positioning themselves for a potentially strong reading, given the signs of sustained strength in the labor market. A positive nonfarm payrolls report could further boost market confidence.

The Role of Technology Stocks and Interest Rates

Tech stocks have been a major driver of the market rally. Persistent cheer over artificial intelligence is expected to continue to support the sector in the coming months. Additionally, the prospect of lower interest rates in the near-term has spurred some gains in tech stocks.Wall Street indexes hit a record high on Tuesday as major technology stocks extended their recent rally. However, the pace of gains has started to slow down due to increasing uncertainty about the economic outlook.In November, Wall Street rose sharply after Donald Trump won the 2024 presidential election. Investors were optimistic about more expansionary policies and tax breaks under his leadership.