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Wall Street ended lower on Monday with investors taking a
post-Thanksgiving pause, though all three major indexes remained
on course for monthly gains, snapping three straight months of
losses, on growing rate cut optimism.
The rebound in equities in November has brought the S&P 500
within a very close range of its 2023 intra-day high.
Multiple policy voting members are scheduled to speak during the
day, including Board Governors Christopher Waller and Michelle
Bowman. Market participants will closely monitor for any cues on
the interest rate path, as focus shifts to the likely timing of
a rate cut.
Money markets have almost fully priced in a pause in rate-hikes
at the December meeting, with expectations of at least a
25-basis point rate cut in May 2024 standing at nearly 51%,
according to the CME Group's FedWatch Tool.
At 5:32 a.m. ET, Dow e-minis were up 14 points, or 0.04%, S&P
500 e-minis were down 1.75 points, or 0.04%, and Nasdaq 100
e-minis were down 16.25 points, or 0.1%.
"Subdued sentiment is hanging around with investors keeping
their powder dry ahead of a key inflation report in the United
States, while the impact of elevated interest rates on economies
is still being assessed," said Susannah Streeter, head of money
and markets at Hargreaves Lansdown.
Personal consumption expenditure data - the Fed's preferred
inflation gauge - and the "Beige Book", a snapshot of the U.S.
economy, are due later this week, which will help investors to
assess the economic condition.
On the economic data front, the Conference Board's consumer
confidence survey is due for release at 10:00 a.m ET, which is
expected to show consumer confidence eased in November.
Shares of Zscaler fell 6.5% before the bell as the cloud
security firm's higher operating expenses in the first quarter
overshadowed its strong forecast and profit beat.
Boeing added 1.7% after RBC Capital Markets upgraded the
aerospace company to "outperform" from "sector perform" and set
a street-high price target.
Affirm Holdings gained 2.8%, following its 12% jump in the
previous session on Cyber Monday spending boost, and as
Jefferies upgraded the payments platform to "hold."
(Reporting by Shristi Achar A in Bengaluru; Editing by Shinjini
Ganguli)
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