U.S. stock index futures showed minimal movement Sunday, reflecting cautious investor sentiment as markets await the Federal Reserve’s policy decision later this week, widely expected to include a 25-basis-point interest rate reduction.
- S&P 500 futures up 0.03%, Nasdaq-100 futures flat on Sunday
- 92% probability of a 25-basis-point Fed rate cut, per CME FedWatch Tool
- November nonfarm payrolls rose by 167,000, below the 180,000 forecast
- Unemployment rate remained at 4.1% for the third consecutive month
- Markets currently pricing the federal funds rate to end December at 4.25%–4.50%
- Investor positioning remains balanced, with minimal pre-meeting volatility
U.S. stock index futures traded near unchanged levels Sunday evening, with the S&P 500 futures rising 0.03% and the Nasdaq-100 futures flat, signaling subdued expectations ahead of the Federal Reserve’s December meeting. Market participants are pricing in a 92% probability of a 25-basis-point rate cut, based on CME Group’s FedWatch Tool, with the benchmark federal funds rate projected to settle between 4.25% and 4.50% post-meeting. The anticipation comes amid mixed economic data, including a November jobs report that showed nonfarm payrolls increasing by 167,000, below the 180,000 forecast, while the unemployment rate held steady at 4.1%.