Stock futures are holding steady as we await critical inflation data, but the real story is the Fed's upcoming interest rate decision. It's a delicate dance for traders, as they navigate a sea of economic data points.
The S&P 500 and Nasdaq Composite closed slightly higher in the previous session, with the tech-heavy Nasdaq extending its winning streak. But here's where it gets controversial: investors are hoping for a softening labor market to influence the Fed's rate decision.
According to the CME FedWatch tool, there's an 87% chance of a rate cut next week, a significant shift from just a few weeks ago. Sonali Basak, iCapital's chief investment strategist, warns that 2026 is a wild card when it comes to inflation, and the labor market's resilience could be a key factor.
And this is the part most people miss: the market will have a fresh batch of economic releases on Friday, including delayed September data on consumer spending and incomes. The University of Michigan's consumer survey for December will also be released, providing further insights.
Stocks are managing to post small gains this week, with the S&P 500 up 0.1% and the Nasdaq and Dow showing even stronger performances.
In extended trading on Thursday, Ulta Beauty, HPE, and SoFi were among the stocks making headlines. Ulta Beauty's shares rose nearly 6% after beating Wall Street's expectations and raising its full-year forecasts. On the other hand, HPE's shares dropped around 8% after missing revenue expectations. SoFi's stock moved lower after announcing a public offering of its common stock.
So, what does this all mean for the future of the market? Will the Fed's decision impact the trajectory of these stocks? Weigh in with your thoughts and opinions in the comments below!
