Anticipation Looms as Fed's Rate Decision and Economic Data Await Investors

U.S. stock futures declined as investors anticipated economic data and Federal Reserve Chair Powell's remarks to gauge future monetary policy. The S&P 500 and Dow posted modest gains, overshadowed by Nasdaq's losses. Traders are keenly watching Fed's upcoming rate decision, along with global economic influences like Japan's potential rate hike.

U.S. stock index futures experienced a downturn on Monday as investors awaited critical economic data and insight from Federal Reserve Chair Jerome Powell. The anticipation centers around the Federal Reserve's impending monetary policy decision scheduled for later this month, which has kept many market participants on the sidelines.

The benchmark S&P 500 and blue-chip Dow indices secured some gains last month, driven by expectations of an interest rate cut in December. However, the tech-heavy Nasdaq confronted its largest losses since March, as fears surrounding artificial intelligence (AI) investments persisted. Monday's surveys from S&P Global and the Institute for Supply Management could provide valuable insight into the U.S. economic landscape ahead of Powell's remarks.

Focus this week leans heavily on a delayed report on the Personal Consumption Expenditures Index, set for release Friday. Meanwhile, Japan may raise its interest rates in December to combat inflation and a weakening yen, potentially undoing extensive carry trades. Cyber Monday has also generated buzz, with online shoppers spending a record $11.8 billion on Black Friday. On the stock front, U.S.-listed crypto stocks like Strategy and Coinbase saw significant losses as bitcoin prices dropped further.

(With inputs from agencies.)