U.S. stock futures rose on Monday as investors endured a brutal week awaiting a slew of key economic data in the coming days to help set interest rate expectations for 2026.
Contracts for the S&P 500 Index (ES=F) and the tech-heavy Nasdaq 100 Index (NQ=F) rose 0.4% after closing sharply lower on Friday. Meanwhile, the Dow Jones Industrial Average (YM=F) contract also rose 0.4%.
Concerns about overexpected expectations for artificial intelligence have recently driven investors away from technology stocks and into value stocks. That weighed on the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC), but the Dow Jones (^DJI) didn’t fare too badly because it contains fewer tech stocks. But many strategists view the rotation as positive, a sign of broader support for stocks from narrowly focused tech leaders.
The market is now entering its last full trading week of the year, driven by optimism on Wall Street ahead of the new year. Analysts believe President Trump’s influence over a reshaped Federal Reserve and its “one big, beautiful bill” could lead to monetary and fiscal stimulus that would be good for stocks and corporate earnings.
Hopes for further easing from the Federal Reserve were brought to a major test this week as the U.S. government shutdown delayed the release of key economic data. The monthly jobs report for November will be released on Tuesday, with inflation data for the same month due on Thursday. The latest data on retail sales for October also came in the thick of the meeting, all of which are being closely watched as investors deliberate whether policymakers are close to completing a rate cut.
A key factor is how the Fed will change once Chairman Jerome Powell’s term ends in May. Trump, who has strongly called for lower interest rates, has labeled Kevin Hassett as the frontrunner to succeed him, with Kevin Warsh also in the running. On Sunday, White House economic adviser Hassett said he would consider Trump’s policy advice if he chose, but that the Fed’s interest rate decisions would remain independent.
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