U.S. stock futures remained mostly unchanged Monday night as investors navigated a cautious beginning to December trading. The contracts associated with the Dow Jones Industrial Average and S&P 500 hovered near flatlines, while Nasdaq 100 futures experienced a slight uptick of 0.1%.
This tepid trading follows a disappointing session on Wall Street, which ended a five-day winning streak for all three major indexes. An increase in risk-off sentiment has been attributed to ongoing inflation concerns, high market valuations, and renewed skepticism regarding the returns on substantial investments in artificial intelligence.
Meanwhile, the cryptocurrency market saw a significant downturn, with Bitcoin dropping by 6%, marking its worst day since March. Associated shares, including those of crypto platforms Coinbase and Robinhood, also suffered, each falling more than 4%.
Notably, despite a challenging November for the technology sector, both the S&P 500 and the Dow managed to register modest gains for the month. Traders are now attentive to potential triggers that might spark a year-end rally.
In the context of interest rates, expectations for a December cut have surged ahead of the Federal Reserve’s policy decision set for December 10. Futures markets are reflecting an 87.6% probability of a rate cut, a notable increase from mid-November figures.
Investors are closely monitoring the Fed as expectations of change rise, especially given the tension between President Trump and Fed Chair Jerome Powell over the past year. Trump recently indicated he has chosen a successor for Powell, though he did not specify a name. White House economic adviser Kevin Hassett is perceived as a frontrunner for the position.
As the third-quarter earnings season continues to wind down, companies such as Marvell, Crowdstrike, and Okta are scheduled to release their reports on Tuesday, drawing further attention from market participants.
