U.S. stock futures pointed to a positive start on Wall Street after last week’s U.S. inflation data fueled optimism for potential Federal Reserve rate cuts in 2025. S&P 500 futures rose 0.1%, and Nasdaq futures gained 0.4%, signaling recovery following last week’s losses. The dollar remained strong due to high bond yields, impacting commodities and gold, while European markets faced pressure amid weak economic sentiment in the eurozone.
The STOXX 600 showed modest gains but remained on track for its worst quarterly performance in over two years. Investors shifted focus toward U.S. equities and the dollar, with the euro hitting a two-year low. Political challenges in Germany and France further dampened confidence in Europe, while the U.S. economy exhibited resilience with stable employment, easing inflation, and robust business activity, driving the S&P 500 to record highs in 2024.
Globally, Japan’s Nikkei rose 1.2%, aided by automotive sector gains. The dollar index neared two-year highs, benefiting from expectations of a resilient U.S. economy and potential rate cuts next year. Meanwhile, oil prices dipped under pressure from a stronger dollar and concerns over weakened Chinese demand. Brent crude fell to $72.71 a barrel, highlighting ongoing market uncertainties.