Futures Flat Ahead of Economic Data and Trump Administration Plans

U.S. stock index futures were mostly unchanged as markets awaited important economic data releases and insights into the incoming Trump administration’s policies. At 5:42 a.m. ET, Dow futures rose slightly by 0.07%, while the S&P 500 and Nasdaq also saw marginal increases of 0.11% and 0.09%, respectively. Key data points, including the Job Openings and Labor Turnover survey for November and December’s services activity data, were scheduled for release later in the morning. Investors are keenly watching these figures for clues on the economy’s strength, which could influence the Federal Reserve’s future monetary policy.

The anticipation of economic data comes as traders eye potential shifts in the Federal Reserve’s stance on interest rates. The 10-year Treasury yield has climbed to 4.6%, its highest level since May 2024, as signs of economic resilience suggest that expectations for rate cuts may be delayed. The Fed’s December meeting minutes are set for release on Wednesday, providing further insights into the central bank’s approach. Richmond Fed President Thomas Barkin’s comments are also anticipated, as he and other officials have raised concerns about inflation risks and the need for restrictive borrowing costs under the incoming administration.

Meanwhile, markets are closely monitoring President-elect Donald Trump’s plans, particularly his campaign promises of tax cuts, tariffs, and deregulation. If implemented, these measures could stimulate the economy but also pose inflation risks and potentially slow the pace of the Fed’s easing cycle. Additionally, Trump’s tariff policies could increase trade tensions, particularly with major global partners. On the corporate front, semiconductor stocks saw notable movements, with Nvidia and Micron Technology posting gains after announcing new products and partnerships at a major tech conference. Aurora Innovation surged after unveiling a partnership to deploy self-driving trucks at scale.