US stock futures steady with PCE inflation in focus
Investing.com– U.S. stock index futures steadied on Tuesday evening after a positive session on Wall Street, with focus turning squarely to upcoming inflation data that is likely to factor into the outlook for interest rates.
Futures steadied after a positive session on Wall Street, as gains in technology stocks helped offset concerns over increased import tariffs under President-elect Donald Trump, after he threatened to impose more tariffs on China, Canada, and Mexico.
Investors were also digesting a mixed outlook on U.S. interest rates, after the minutes of the Federal Reserve’s November meeting showed policymakers were divided over future rate cuts.
S&P 500 Futures rose 0.1% to 6,041.50 points, while Nasdaq 100 Futures steadied at 20,989.25 points by 18:17 ET (23:17 GMT). Dow Jones Futures rose 0.1% to 44,986.0 points.
Trading volumes are expected to be muted in the remainder of the week, with the Thanksgiving holiday on Thursday.
PCE inflation data awaited for more rate cues
Focus on Wednesday will be on PCE price index data for October, due at 10:00 AM ET (03:00 GMT).
The reading is the Fed’s preferred inflation gauge, and is likely to factor into the central bank’s plans to cut interest rates further.
Core PCE price index data is also expected to have risen steadily in October and remained above the Fed’s 2% annual target.
Recent signs of sticky U.S. inflation sparked some doubts over just how much the Fed will cut interest rates further. Markets also began questioning the prospect of a 25 basis point cut in December.
These doubts were furthered by the minutes of the Fed’s early-November meeting, released on Tuesday. The minutes showed that policymakers were divided over future rate cuts, and recommended a gradual easing in rates.
Tech gains help Wall St weather Trump tariff threat
Gains in heavyweight technology stocks saw Wall Street indexes rise past Trump’s tariff threats to hit record highs on Tuesday.
The S&P 500 rose 0.6% to a record high of 19,172.81 points, while the Dow Jones Industrial Average rose 0.3% to a record high of 44,860.31 points. The NASDAQ Composite rose 0.6% to 19,172.81 points, closing just below recent peaks.
Five of the Magnificent Seven stocks closed higher on Tuesday, led by an over 3% jump in Amazon.com Inc (NASDAQ:AMZN) after Bloomberg reported the firm plans to trim its dependence on NVIDIA Corporation (NASDAQ:NVDA) by developing its own custom artificial intelligence chips.
After hours movers: HP, Dell slide
Among major aftermarket movers, HP Inc (NYSE:HPQ) slid 7.2% after it issued disappointing guidance for 2025, while Dell Technologies Inc (NYSE:DELL) tumbled 10% after its quarter revenue missed some estimates.
Autodesk Inc (NASDAQ:ADSK) shed nearly 10% even as its earnings beat estimates, while Workday Inc (NASDAQ:WDAY) fell 8% on disappointing guidance.
