U.S. stock index futures ticked higher Tuesday evening as attention shifted to an upcoming speech by Federal Reserve Chair Jerome Powell for insights on the future of interest rates.
Futures rose following gains in major technology stocks, which pushed Wall Street to new record highs. However, the pace of the recent rally appeared to be slowing, with uncertainties surrounding interest rates and trade tariffs prompting investors to offload stocks in economically sensitive sectors.
By 6:49 PM ET (11:49 PM GMT), S&P 500 Futures were up 0.1% at 6,069.50 points, Nasdaq 100 Futures climbed 0.3% to 21,333.50 points, and Dow Jones Futures added 0.2% to 44,914.0 points.
Powell’s Speech in Focus
Federal Reserve Chair Jerome Powell is scheduled to speak on Wednesday, potentially shedding light on the central bank’s plans for interest rates.
The address comes just weeks ahead of the Fed’s final 2024 meeting, where a 25-basis-point rate cut is widely anticipated. However, the long-term outlook remains clouded by persistent inflationary pressures.
The prospect of protectionist trade policies under President-elect Donald Trump, including increased import tariffs, has also fueled concerns over prolonged inflation. Trump recently threatened higher tariffs on several countries, including members of the BRICS bloc, Canada, and Mexico.
In a recent note, Goldman Sachs analysts projected that such tariffs could delay inflation from reaching the Fed’s 2% target.
Key Data Ahead
Beyond Powell’s remarks, markets are also closely watching November’s nonfarm payrolls data, set for release on Friday. Investors anticipate a robust report, reflecting continued strength in the labor market. Wall Street Supported by Tech Gains, But Rally Shows Signs of Slowing
Wall Street indexes reached record highs on Tuesday, driven by continued strength in major technology stocks. However, the pace of the rally appeared to be tapering amid growing uncertainty over the economic outlook.
The S&P 500 edged up 0.1% to a record-high close of 6,049.88 points, while the NASDAQ Composite climbed 0.4% to 19,478.89 points. In contrast, the Dow Jones Industrial Average slipped 0.2% to 44,705.53 points.
Technology stocks benefited from sustained optimism surrounding artificial intelligence, which is expected to remain a key growth driver in the coming months. Expectations of lower interest rates in the near term also provided support for the sector.
Wall Street saw significant gains throughout November following Donald Trump’s victory in the 2024 presidential election, with investors anticipating more expansionary policies and tax cuts under his administration.
