Market Jitters: Rate Cuts, Retail Resilience, and Tech Turbulence

Amid investor speculation on the Federal Reserve's potential rate cut, U.S. stock futures showed mixed movements. Economic data shortage due to a government shutdown has raised concerns, while cautious optimism revolves around holiday retail sales surpassing $1 trillion. Despite challenges, the tech sector's valuation remains a point of contention.

In a tumultuous Monday trading session, U.S. stock futures showed mixed performance as investors closely monitored the possibility of a Federal Reserve interest rate cut in December. Looming concerns over an economic data vacuum from a prolonged government shutdown exacerbated anxieties, alongside fears of an AI-driven market bubble.

New York Fed President John Williams' dovish comments last week provided some relief, yet highlighted internal policy divisions. Investors, betting on a 75% chance of a December rate cut, find themselves divided as well, with influential market voices expressing skepticism on such a move amid sparse economic data.

As the holiday season kicks off with Thanksgiving, the focus shifts to consumer spending. With the potential to surpass $1 trillion, holiday sales are under scrutiny amidst rising unemployment and layoff news. Concurrently, worries over tech sector valuations remain unresolved, impacting Wall Street's outlook for November.

(With inputs from agencies.)