Dow, Nasdaq, S&P Futures Flat as Markets Await Crucial December Fed Decision

U.S. stock futures signaled a steady start with minimal movement as investors awaited the Federal Reserve’s upcoming policy meeting. Recent inflation data has strengthened hopes for an interest rate cut, while key corporate earnings are also on deck this week. Global central banks are watching the Fed’s next steps closely.

Dow Jones Industrial Average futures rose 35 points, or 0.2%, on Sunday night, while S&P 500 and Nasdaq 100 futures inched higher by 0.1% each. The quiet tone follows two straight weeks of gains for major indexes. Last week, the Dow advanced 0.5%, the Nasdaq Composite climbed 0.9%, and the S&P 500 added 0.3%, leaving it just 0.7% below its record intraday high.

September’s core personal consumption expenditures (PCE) index — the Fed’s preferred inflation gauge — increased 0.2% month-over-month and 2.8% year-over-year, in line with expectations and softer than earlier readings. The data lifted equities on Friday, extending four-day winning streaks for the S&P 500 and Nasdaq, while the Dow logged gains in three of the past four sessions.

Traders now see a higher probability of a mid-week rate cut, with CME FedWatch data showing increased odds of a 25-basis-point reduction, driven by cooling inflation and Fed funds futures pricing.