Investor Caution Ahead of Key U.S. Inflation Data

U.S. stock futures showed little movement on Monday as heightened investor caution loomed before key inflation data due later this week. The report is crucial before the Federal Reserve's meeting. Meanwhile, strong employment numbers and market trends hint at probable monetary policy shifts and stock index futures slightly dipped.

U.S. stock index futures remained flat on Monday following record highs for the S&P 500 and Nasdaq in the previous session, buoyed by optimistic corporate forecasts. Investors are now focused on important inflation data scheduled for release this week.

The consumer prices index (CPI) report, set for Wednesday, serves as one of the final significant datasets ahead of the Federal Reserve's meeting on December 17-18. This report could significantly influence the central bank's approach to monetary policy. Market participants are currently factoring in an 87% probability of a 25-basis-point rate cut next week, as suggested by the CME's FedWatch tool.

On the morning front, Dow E-minis fell by 24 points, S&P 500 E-minis dropped 5 points, and Nasdaq 100 E-minis were down 30.5 points. Despite the slight dips, U.S. equities rallied in November, bolstered by political events like President Trump's election victory and stronger corporate outlooks. Notable market movers include Workday and Apollo Global Management, while Chinese companies like Alibaba also saw gains amid expectations of shifts in China's fiscal policy.

(With inputs from agencies.)