Market Moves: Wall Street Awaits Fed's Next Step Amid Economic Data and AI Concerns

U.S. stock index futures feel pressure as investors pause ahead of key economic insights and a speech by Federal Reserve Chair Jerome Powell that could illuminate future interest rate cuts. Nasdaq's significant losses highlight ongoing AI investment anxieties, while various markets await critical U.S. manufacturing and inflation data.

Investors kept to the sidelines Monday as U.S. stock index futures slipped, anticipating fresh economic data and a crucial speech from Federal Reserve Chair Jerome Powell. The modest gains posted last month by Wall Street's S&P 500 and Dow are overshadowed by concerns of an AI-stock bubble and potential rate cuts.

In November, the tech-laden Nasdaq experienced substantial losses—its largest since March—emphasizing persistent concerns over AI spending. As markets opened, surveys by S&P Global and the Institute for Supply Management on U.S. manufacturing activity aimed to shed light on the country's economic health.

Market volatility continues due to rising prices that don't align with investor expectations. Daniela Hathorn from Capital.com suggests turbulence until clearer data emerges. Powell's upcoming remarks are crucial for rate change insights. Meanwhile, the market's eye is on inflation metrics and potential Bank of Japan rate hikes.

(With inputs from agencies.)