U.S. stock futures moved slightly lower on Sunday evening after a week of steady gains. Investors are focusing on the rising chances of a Federal Reserve rate cut in December and on the growing uncertainty around who will become the next Fed chair.
S&P 500 futures slipped 0.3% to 6,838.25. Nasdaq 100 futures dropped 0.4% to 25,380.25. Dow Jones futures were down 0.2% at 47,644.0 by 19:37 ET (00:37 GMT).
Rate cut expectations rise
Wall Street finished last week in positive territory. Technology and retail stocks helped lead the market higher. The S&P 500 gained 3.7% for the week. The NASDAQ Composite rose nearly 5%. The Dow Jones Industrial Average also climbed more than 3%.
Investor confidence in a December rate cut has strengthened sharply. Markets now show about an 85% chance of a quarter-point cut, compared with the mid-40% range only a week earlier.
Dovish comments from Federal Reserve officials added momentum to those expectations. Remarks from the New York Fed President and a Fed governor suggested that economic conditions may justify a cut. Still, uncertainty remains due to limited new data.
Focus shifts to the next Fed chair
At the same time, markets are watching closely for news on who will lead the Federal Reserve next. President Donald Trump said on Sunday that he has already chosen his preferred replacement for Jerome Powell. He also signaled that he expects his nominee to support interest-rate cuts.
Reports indicate that several names are on the shortlist. These include Kevin Hassett, former governor Kevin Warsh, and current governor Christopher Waller, among others.
A new Fed chair could significantly influence future policy. If Trump selects a more dovish candidate—someone open to earlier or deeper rate cuts—investors may gain more confidence in a shift toward easier monetary policy. That outlook could boost equities, especially in rate-sensitive areas such as retail and growth stocks.
