A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, September 6, 2022.
Brendan McDermid | Reuters
U.S. stock futures are slightly lower on Monday morning as investors await more economic data ahead of the Federal Reserve’s December policy meeting.
Dow Jones Industrial Average futures fell by 34 points, or 0.1%. S&P 500 and Nasdaq 100 futures dipped 0.16% and 0.19%, respectively.
On Friday, the major averages closed little changed after rebounding from earlier losses. The Dow Jones Industrial Average added roughly 35 points, or was 0.1% higher. The S&P 500 declined 0.1%, while the Nasdaq Composite dipped 0.2%. The three indexes notched their second straight positive week.
A strong November jobs report released Friday initially weighed on stocks, but traders shook off those concerns in anticipation of smaller rate hikes from the Fed possibly starting with the Dec. 13 to 14 policy meeting. Investors are expecting a week that could be light on catalysts ahead of that meeting.
“One of the things we’re concerned about is that even if inflation heads lower from here, the cost of getting from, say, a 4% rate of inflation to 2% becomes increasingly high. It would likely come with some significant shakeout amongst businesses and the labor market,” Baird’s Nicholas Bohnsack said in a Friday note.
“Ultimately, we think they’ll slow the pace at which they’re raising rates and then take a long time to observe the landscape and the impact that may have,” Bohnsack added.
On the economic front, investors are expecting the November ISM services data at 10 a.m. ET on Monday. Economists polled by the Dow Jones are expecting a reading of 53.7.
