U.S. stock index futures remained muted on Monday evening, stabilizing after sharp losses in the technology sector pushed Wall Street lower earlier in the day. Investors are now focused on upcoming inflation data and geopolitical developments following the overthrow of the Bashar al-Assad regime in Syria.
- S&P 500 Futures fell 0.1% to 6,061.75 points.
- Nasdaq 100 Futures dipped 0.1% to 21,476.0 points.
- Dow Jones Futures held steady at 44,469.0 points.
Inflation Data Anticipated Amid Uncertain Rate Outlook
The market’s attention is firmly on the Consumer Price Index (CPI) report due Wednesday, which is expected to show a slight uptick in headline inflation to 2.7% year-on-year from 2.6% in October. Core inflation, which excludes volatile items, is projected to remain at 3.3%.
Earlier in 2024, inflation showed signs of cooling but has become more persistent in recent months due to the resilient U.S. economy. While markets still anticipate a 25 basis point rate cut by the Federal Reserve next week, longer-term rate forecasts remain uncertain, particularly amid expectations of inflationary policies under President-elect Donald Trump.
Tech Stocks Pressure Wall Street
A sell-off in technology stocks, following a recent rally, led Wall Street lower on Monday:
- NVIDIA Corporation (NASDAQ:NVDA) dropped 2.6% during the session and an additional 0.6% in aftermarket trading amid reports of a Chinese antitrust probe.
- Oracle Corporation (NYSE:ORCL) tumbled 8% after posting weaker-than-expected earnings, reflecting intensifying competition from rivals like Microsoft (MSFT) and Amazon (AMZN).
Losses in tech stocks pulled down key indexes:
- S&P 500 fell 0.6% to 6,052.85 points.
- NASDAQ Composite dropped 0.6% to 19,741.30 points.
- Dow Jones Industrial Average slipped 0.5% to 44,401.93 points.
Bright Spots: AI and Pharma
Amid the broader market decline, some stocks saw gains in afterhours trading:
- MongoDB (NASDAQ:MDB) surged 10% on better-than-expected earnings.
- C3.ai Inc (NYSE:AI) rallied 15% after strong AI-driven demand lifted quarterly results.
- Eli Lilly and Company (NYSE:LLY) rose 0.8%, buoyed by a $15 billion share buyback announcement and a dividend hike.
