Stock Markets on Edge: Fed Rate Cut Anticipation

U.S. stock index futures slipped as traders anticipated retail sales data and a potential Federal Reserve rate cut. While treasury yield climbed, impacting stocks, Tesla gained after an upgraded rating. Expectations of a quarter-point rate cut, coupled with optimism on Trump's policies, influenced market trends.

Traders in the U.S. stock market are on edge as they await the release of the November retail sales data. Scheduled for 8:30 a.m. ET, this data will offer insights into consumer health before an expected Federal Reserve rate cut later in the week.

The yield on the U.S. 10-year Treasury note recently surged past 4.42%, its highest level in over three weeks, adding pressure to stock prices. Strong market bets suggest a possible cautious stance by the Fed in 2025, with a quarter-point interest rate cut expected this Wednesday.

Tesla's stock saw a rise following Mizuho's upgrade, while Pfizer's stock also gained after aligning 2025 profit forecast with market expectations. The markets, buoyed by technology companies and Trump's corporate policies, remain optimistic yet cautiously aware of inflation's impact on future rate cuts.

(With inputs from agencies.)