U.S. stock futures were largely unchanged on Sunday evening after major indexes posted their second consecutive weekly gain. Investors have now shifted their focus to this week’s Federal Reserve meeting, where another interest-rate cut is widely expected.
By 20:15 ET (01:15 GMT), S&P 500 futures edged up 0.1% to 6,882.75. Nasdaq 100 futures also rose 0.1% to 25,755.75, while Dow Jones futures were mostly flat at 47,988.0.
Fed Rate Cut Expectations Strengthen After PCE Data
For the week, the Dow Jones Industrial Average added about 0.5%, the S&P 500 rose 0.3%, and the NASDAQ Composite gained 0.9%.
Markets now hold strong expectations for a third consecutive quarter-point cut when the Federal Open Market Committee meets on December 9–10. Support for this view increased after September’s Personal Consumption Expenditures (PCE) Price Index — the Fed’s preferred inflation gauge — showed softer-than-expected results. Core PCE rose just 0.2% on the month and 2.8% year-on-year, both below analyst forecasts.
Cooling inflation, combined with signs of a weakening labor market and slower consumer spending, has strengthened the argument for further policy easing.
Analysts also expect the Fed’s messaging to play a key role. Investors will closely watch the post-meeting statement and the updated projections for 2026.
According to ING, the main question is what the Fed will signal for next year. Analysts noted that the most dovish scenario would involve adding a second rate cut to the 2026 forecast, although they believe the Fed will be hesitant to do so.
Earnings From Lululemon and Costco in Focus
Corporate earnings will also influence market sentiment this week. Reports are due from Lululemon (NASDAQ:LULU), Costco (NASDAQ:COST), Broadcom (NASDAQ:AVGO), Oracle (NYSE:ORCL), and Adobe (NASDAQ:ADBE).
In addition, S&P Global announced that Carvana (NYSE:CVNA), CRH PLC (NYSE:CRH), and Comfort Systems USA (NYSE:FIX) will join the S&P 500. Such changes typically prompt shifts among index-tracking funds.
