Stock futures are maintaining a steady course as investors brace for the Federal Reserve’s final decision of the year regarding interest rates. The Fed’s two-day policy meeting commenced today, with market participants keenly observing signs of a softening labor market in juxtaposition with persistent inflation concerns. Futures linked to both the Dow Jones Industrial Average and the benchmark S&P 500 recorded modest gains of less than 0.1%, while those associated with the tech-heavy Nasdaq experienced slight declines. Notably, all major indexes saw a pullback on Monday after a previous week of near-record highs. The yield on the 10-year Treasury note remained stable at 4.17%, maintaining levels not seen in over two months. Additionally, Bitcoin was valued at $90,600 after dipping to a low of $89,500 overnight. Meanwhile, gold futures rose by 0.3% to $4,230 an ounce, and WTI crude oil futures edged up 0.2% to approximately $59 per barrel.
The Federal Reserve is convening its policy committee today, with expectations that it will implement the third consecutive reduction in the benchmark fed funds rate. Investors are eager not only for the interest rate decision but also for the quarterly projections on key economic indicators and rates, along with insights from Fed Chair Jerome Powell. The Fed faces the challenge of balancing apprehensions regarding a weakening labor market against ongoing inflation threats. A significant data release is anticipated on Tuesday, with the Job Openings & Labor Turnover Survey (JOLTS) for October set to provide further insights.
In corporate news, Nvidia received approval from the U.S. government to sell its older-generation artificial intelligence GPUs, the H200, to select customers in China. This deal stipulates that 25% of the revenue generated will be directed to the U.S. government. Both the Trump and Biden administrations expressed concerns over the national security implications of advanced chip sales to China, prompting Nvidia to adjust its previous sales agreements. Following the announcement, Nvidia shares saw a slight increase of about 1% in premarket trading.
On another front, the European Union has initiated a formal investigation into Google regarding its practices in utilizing online data for training its AI models. The European Commission suspects that Google may have acted anti-competitively by leveraging online content and YouTube videos to develop its AI offerings without adequately compensating publishers. Concerns have been raised that Google provides its own AI models with preferential access to online content, disadvantaging other companies also seeking to train their AI.
Meanwhile, Home Depot reported a dip in its stock ahead of its annual investor day, largely due to a disappointing outlook for 2026. The home improvement retailer projected that the broader market could either decline or grow minimally next year, estimating its own sales growth between 2.5% and 4.5%. This projection fell short of analyst expectations, leading to nearly a 3% decline in shares before market opening. Home Depot indicated optimism about future growth, contingent on a recovering housing market and unmet demand for home improvement projects.
