According to Yahoo News, U.S. stock index futures experienced a decline on Monday, as investors anticipated a crucial inflation reading and commentary from Federal Reserve policymakers later in the week. Retailers were also in the spotlight as holiday shopping intensified with Cyber Monday deals. Wall Street concluded the Thanksgiving week on a high note, with major indexes marking their fourth consecutive week of gains due to increasing optimism that the Federal Reserve had likely finished raising interest rates.
The equity rebound in November brought the S&P 500 within 1% of its highest intra-day level this year. Traders have factored in the possibility of a pause in rate hikes in December and see a 53% chance of a rate cut of at least 25 basis points in May 2024, according to the CME Group's FedWatch Tool. Several Fed officials are scheduled to speak at various conferences this week, with Chair Jerome Powell expected to participate in a fireside chat on Friday.
Investors are also awaiting the release of the Fed's 'Beige Book' and the personal consumption expenditure index data for October, the Fed's preferred inflation gauge. Retailers were under scrutiny following Black Friday and the start of Cyber Monday, with shoppers expected to spend up to a record $12 billion. Shares of Amazon.com and Walmart increased by 0.8% and 0.2%, respectively, before the bell.
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