As investors awaited a crucial inflation data, U.S. stock futures saw minimal movement on Thursday night after Wall Street’s somewhat flat closing, which was bolstered by strong expectations of a Federal Reserve rate drop next week.
By 20:10 ET (00:10 GMT), S&P 500 Futures had risen 0.1% to 6,872.50 points, while Nasdaq 100 Futures had risen 0.2% to 25,661.75 points. At 47,926.0 points, Dow Jones Futures was flat.
Wall Street is supported by Fed reduction bets; PCE inflation is expected
During the regular session, the NASDAQ Composite gained 0.2%, the S&P 500 increased 0.1%, and the Dow Jones Industrial Average decreased 0.1%.
At the Fed’s December 9ā10 meeting, the probability of a 25-basis point decrease has increased, with futures now putting in an 87% chance. Concern about recent poor labor statistics and more general indications of an economic slowdown is reflected in this action.
U.S. Job Market Cools
U.S. weekly unemployment claims fell by 27,000 to a seasonally adjusted 191,000 on Thursday, the lowest level since September 2022, according to the most recent labor market data. Despite the steep reduction, experts warned that the decline could have been overstated due to Thanksgiving-related biases.
ADP’s private-sector payroll data on Wednesday revealed a 32,000 job reduction, the most in more than two and a half years. According to a Challenger, Gray & Christmas survey, hiring intentions remained low despite a significant decline in reported job cutbacks in November.
Fed Awaits Crucial Report
These changes coincide with the Bureau of Labor Statistics’ official employment report being delayed by a record-long 43-day government shutdown. It will now take place after the Fed’s policy meeting.
The Personal Consumption Expenditures Price Index (PCE), the Fed’s favored inflation indicator, will be released on Friday, and everyone is watching. Expectations of a rate decrease might be strengthened by a weaker PCE print.
In post-market trade, Hewlett Packard Enterprise declines
Shares of Ulta Beauty Inc. (NASDAQ:ULTA), a cosmetics retailer that exceeded Wall Street projections for its fiscal third quarter and increased its full-year guidance, rose more than 6% during extended trading.
After Hewlett Packard Enterprise (NYSE:HPE) reported $9.68 billion in sales for the fourth quarter, below analysts’ estimates of $9.94 billion, the cloud services and hardware company’s shares fell 9% post-market.
