US Stock Futures Steady with PCE Inflation in Focus

U.S. stock index futures remained stable on Tuesday evening following a successful trading session on Wall Street. Investors are shifting their attention to the upcoming inflation data, which is expected to play a significant role in shaping forecasts for future interest rates.

Futures exhibited steady behavior after Wall Street's positive performance, buoyed by gains in technology stocks. These gains served to mitigate concerns regarding possible increases in import tariffs suggested by President-elect Donald Trump, who has hinted at imposing more tariffs on countries such as China, Canada, and Mexico.

Investors are also weighing a mixed outlook for U.S. interest rates. The minutes from the Federal Reserve's November meeting indicated a division among policymakers regarding future rate cuts.

The Dow Jones Industrial Average rose by 0.1% to stand at 20,989.25 points, while the NASDAQ Composite increased by 0.1% to 6,041.50 points. The S&P 500 climbed by 0.6% to reach 44,986.0 points.

With the Thanksgiving holiday approaching on Thursday, trading volumes are anticipated to be low for the remainder of the week.

PCE Inflation Data Awaited for More Rate Cues

On Wednesday, the market will turn its focus to the October inflation data set to be released at 10:00 AM ET (03:00 GMT). This data represents the Fed's preferred inflation measure and is crucial for their ongoing assessment of potential interest rate adjustments.

The inflation numbers are expected to show a steady increase for October, remaining above the Fed's target of 2% annual inflation.

Recent indications of persistent inflation in the U.S. have created some uncertainty about the extent of future rate cuts by the Fed. Speculation has grown around the possibility of a 25 basis point cut in December.

The concerns were reinforced by the Federal Reserve's minutes released on Tuesday, which highlighted a lack of consensus among policymakers regarding additional rate cuts and underscored a preference for gradual rate easing.

Tech Gains Help Wall Street Weather Trump Tariff Threat

Strong performances from major technology stocks propelled Wall Street indexes to new record highs, countering fears related to Trump's tariff threats.

The NASDAQ Composite surged by 0.6% to a record high of 19,172.81 points, while the S&P 500 climbed by 0.3% to an all-time high of 44,860.31 points. The Dow Jones Industrial Average gained 0.6%, closing just short of its recent peaks.

Among the top performers, five of the "Magnificent Seven" tech stocks closed higher, led by a notable increase of over 3% in Amazon.com Inc, which plans to reduce its reliance on NVIDIA Corporation by developing its own custom AI chips, according to a report from Bloomberg.

After Hours Movers: HP, Dell Slide

In after-hours trading, major movers included HP Inc, which fell 7.2% after giving weaker-than-expected guidance for 2025, and Dell Technologies Inc, which dropped 10% following revenue results that missed estimates.

Autodesk Inc declined nearly 10% despite exceeding earnings expectations, while Workday Inc fell 8% due to disappointing outlook.

Stocks, Inflation, Interest