Wall Street Anticipates Economic Data with Eyes on Interest Rate Forecasts

Wall Street futures gained as investors awaited critical economic data to guide interest rate expectations. Technology stock rebounds and hopeful inflation reports are influencing market momentum. GDP data is expected to highlight a K-shaped economy. Traders anticipate multiple rate cuts next year amidst hopes of a 'Santa Claus rally.'

Wall Street futures opened higher on Tuesday, with investors eagerly anticipating a crucial round of economic data that could influence interest rate expectations for the coming year. This follows a rebound in technology stocks and better-than-expected inflation figures that have lifted U.S. markets in recent sessions.

The awaited preliminary GDP data, delayed by a government shutdown, is expected to reveal a 3.3% annualized growth rate for the third quarter, driven by robust consumer spending and business investment. Analysts suggest this might reinforce the narrative of a K-shaped recovery, highlighting disparity across income levels.

In the midst of these developments, traders are betting on at least two 25-basis-point interest rate decreases next year, with some predicting the first cut as soon as January. Amidst the volatility, the market hopes for a 'Santa Claus rally,' where stocks historically see gains during the year's closing and opening days.

(With inputs from agencies.)