U.S. Stock Futures Look for Direction as Investors Focus on Economic Events

Stock-index futures trading updates:

• S&P 500 futures (ES00, -0.03%) slipped 0.7 points to 4606.75
• Dow Jones Industrial Average futures (YM00, -0.02%) remained flat at 36645
• Nasdaq 100 futures (NQ00, -0.11%) fell 17 points, or 0.1%, to 16292

Last Week's Performance

On Friday, the Dow industrials (DJIA) increased by 130.49 points, or 0.4%, reaching a closing value of 36,247.87. This was the highest close since January 12, 2022. The S&P 500 (SPX) also experienced a 0.4% gain, closing at 4,604.37 – the best performance since March 29, 2022. Similarly, the Nasdaq Composite (COMP) climbed by 0.4% to reach its highest close since April 4, 2022, at 14,403.97.

Market Drivers

Following the positive impact of a better-than-expected jobs report on Friday, investors will now focus on the last Federal Reserve meeting of the year and crucial inflation data ahead of it.

Economists predict that the November consumer prices, set to be released on Tuesday, will reflect low headline inflation but a solid core reading that excludes food and energy prices. Additionally, producer prices are scheduled for release on Wednesday, followed by retail sales on Thursday.

Federal Reserve to Announce Outcome of Two-Day Meeting

On Wednesday, Federal Reserve Chair Jerome Powell and his colleagues are set to disclose the results of their two-day meeting. It is widely expected that the central bank will maintain its key benchmark interest rate within the range of 5.25% to 5.5%.

According to senior research analyst Peter Iosif from Noteris, Friday's robust jobs data might influence Powell's statements this week. He explained, "Despite the potential impact of seasonal factors, the overall data once again highlight the strength and tightness of the U.S. employment market. This release could further strengthen the Fed's hawkish stance and contradict the market's anticipation of an early interest rate cut."

Additionally, the European Central Bank and Bank of England are scheduled to announce their respective policy decisions on Thursday. A decision from the Bank of Japan is expected in the following week.

Yen Weakens Against Dollar as Central Bank Remains Cautious

On Monday, Bloomberg reported that officials from the Bank of Japan have shown no hurry to abandon their long-standing negative interest rate policy. Consequently, the yen is depreciating against the dollar (USDJPY, +0.85%). Last week, there was a surge in expectations that the bank might lean towards ending the policy, which caused the yen to strengthen.

Gold Prices Dip, Crude Futures Slightly Lower

Gold prices (GC00, -0.23%) have declined by 0.2% and currently stand at $2,009.30 per ounce. Similarly, crude oil futures (CL00, -0.59%) are moderately lower.