Fed Anticipation Boosts Markets Amid Rate Cut Speculations

U.S. stock index futures indicate a promising opening as traders speculate on a Federal Reserve rate cut. Key economic data and policy forecasts are awaited, with the Fed balancing inflation and growth. Major indices show gains, driven by tech and AI stocks, amid expectations of pro-business policies.

U.S. stock index futures suggest a favorable start to the trading week, buoyed by investor anticipation of an imminent Federal Reserve interest rate cut. As traders bank on a significant rate reduction, attention also focuses on upcoming economic data releases that could influence next year's policy direction.

The Federal Reserve is set to announce its final rate decision for the year on Wednesday, with a strong likelihood of a 25 basis point cut, according to CME's FedWatch. Key to investors will be the central bank's economic forecast update and its approach to managing inflation amid robust growth. Analysts express cautious optimism, with market participants eager for further rate cuts.

In market movements, U.S. S&P 500 E-minis advanced 17.25 points, Nasdaq 100 E-minis surged 108.25 points, and Dow E-minis increased by 52 points in premarket trading. Stocks have enjoyed a robust performance in 2024, buoyed by artificial intelligence-related gains and anticipated pro-business policies under Donald Trump's upcoming administration.

(With inputs from agencies.)