As Wall Street prepared for a crucial week that would be dominated by the Federal Reserve's final policy meeting of 2025, US stock futures increased on Monday.
Following a fourth day of advances for both, contracts on the tech-heavy Nasdaq 100 (NQ=F) increased by about 0.3%, while those on the S&P 500 (ES=F) increased by 0.2%. Futures on the Dow Jones Industrial Average (YM=F) remained above the flatline.
The slight changes came after the key indexes saw advances in back-to-back weeks. Last week, the Dow (^DJI) and Nasdaq Composite (^IXIC) increased by 0.5% and 0.9%, respectively, while the S&P 500 (^GSPC) increased by 0.3%.
A modest PCE consumer inflation reading for September that suggested a muted impact to "core" expenses helped to boost markets.
The Federal Reserve rate-setters' meeting on Tuesday is the main economic announcement of the next week. Ahead of Chair Jerome Powell's statement and press conference on Wednesday, the public has been closely watching the Fed, with optimism over a rate cut reaching high levels.
Fed funds futures currently indicate an 88% probability of an easing action, which is significantly higher than the sub-67% odds observed a month ago, according to CME FedWatch, reflecting the recent spike in expectations for a rate cut.
Following a mixed bag of data last week, the labor market will also be under scrutiny. The postponed October JOLTS report, which provides information on hiring activity, layoffs, and the rate of employee turnover, will eventually be released on Tuesday.
On the earnings front, Broadcom (AVGO) and Costco (COST) will take center stage on Thursday, while Oracle (ORCL) and Adobe (ADBE) quarterly results will be the main focus on Wednesday.
