(Reuters) – U.S. stock index futures began a decline in December after posting strong gains last month, with attention to a slate of economic data later this week, including a jobs report, to weigh on interest rates. Federal Reserve rates.
The centerpiece of this week will be the non-farm payrolls report for November, released on Friday, a key gauge of labor market conditions.
Traders now see a more than 61% chance the Fed will cut rates by 25 basis points at a meeting later this month, down from a nearly 83% chance a month earlier, according to CME’s FedWatch Tool.
October job data is scheduled to be released on Tuesday, while November private wage data is scheduled to be released on Wednesday.
The S&P 500 and blue-chip Dow hit record highs at the close on Friday, capping a stellar November for U.S. stocks.
Investors enjoyed U.S. stocks last month after Republican nominee Donald Trump reclaimed the White House with his party capturing both houses of Congress.
Trump’s policies of tax cuts, tariffs and deregulation could spur more corporate activity. However, concerns that his policies could increase inflation also led markets to give up hope that the Fed is ramping up its rate-cutting cycle.
The week is also packed with data that could show how the economy is faring, including multiple surveys of economic activity over the past month.
Surveys of manufacturing activity in November from S&P Global and the Institute for Supply Management (ISM) are due out later in the day.
A number of Fed speakers will also make public appearances this week, including Fed Chairman Jerome Powell, and investors will be looking for any clues on the central bank’s policy path.
Comments from Fed Chair Christopher Waller and New York Fed President John Williams will be on the radar later in the day.
Most megacaps and growth stocks were slightly lower on the day, with Nvidia’s 1.6% drop leading the losses. Tesla, on the other hand, outperformed with a 1.7% gain.
At 5:06 a.m. ET, the Dow E-minis were down 54 points, or 0.12%, the S&P 500 E-minis were down 12.75 points, or 0.21%, and the Nasdaq 100 E-minis were down 48.5 points or 0.23%.
Among other early premarket participants, Gap rose 3.5% after JP Morgan upgraded the apparel retailer to “overweight” from “neutral.”
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Maju Samuel)
