After a negative session on Wall Street, futures experienced significant losses. The previously witnessed risk-on rally from last week began to cool, and investors started to second-guess their bets on a December rate cut. This uncertainty was further exacerbated by the long-term outlook for inflation in the face of a potential second Donald Trump presidency. Trump is widely expected to implement more inflationary policies, adding to the complexity of the economic landscape.

Key Factors Influencing Futures

Fed's Stance and Data

Fed Chair Jerome Powell's warning on Thursday played a crucial role. He emphasized that the strength of the U.S. economy would allow the Fed to take its time in deciding on interest rate cuts. While painting a positive picture of the economy, Powell also flagged caution over sticky inflation. This was followed by data showing that producer price index inflation grew more than expected in October, preceded by a consumer price index print that indicated inflation remained sticky. The combination of Powell's comments and the data led traders to sharply pare their bets on a December rate cut. CME Fedwatch showed that traders were pricing in a 51.7% chance of rates remaining unchanged and a 48.3% chance of a cut.

Trump's Policies and Their Impact

Trump's protectionist stance on trade and immigration is expected to keep inflation underpinned in the coming years. This has added to the uncertainty surrounding the long-term outlook for rates. As a result, Wall Street fell from record highs on this notion, while the dollar and Treasury yields rose sharply.

Aftermarket Movers

Among major aftermarket movers, Applied Materials Inc (NASDAQ:AMAT) fell nearly 6% after its quarterly earnings missed some street expectations. Slowing revenue from China was a key point of contention. On the other hand, Domino's Pizza Inc (NYSE:DPZ) surged over 9% after Berkshire Hathaway (NYSE:BRKa) disclosed a stake in the firm. Pool Corporation (NASDAQ:POOL) also rose 5.6% after Berkshire disclosed a stake. These movements highlight the diverse reactions of different companies in the market.