US Stock Futures Steady with PCE Inflation Data in Focus

U.S. stock index futures remained stable on Tuesday evening following a positive trading day on Wall Street. The market is keenly awaiting upcoming inflation data that is expected to influence the outlook for interest rates.

The futures steadied as gains in technology stocks helped to quell concerns regarding potential increases in import tariffs proposed by President-elect Donald Trump. He has indicated that he may impose more tariffs on countries like China, Canada, and Mexico.

Investors are also analyzing a mixed perspective on U.S. interest rates. Recent minutes from the Federal Reserve’s November meeting revealed that policymakers were divided when it comes to future rate cuts.

The tech-heavy index rose by 0.1% to 6,041.50 points by 18:17 ET (23:17 GMT), while the other indexes remained steady around 20,989.25 points. The Dow Jones increased by 0.1% to reach 44,986.0 points.

As the week progresses, trading volumes are anticipated to decrease, particularly with the Thanksgiving holiday approaching on Thursday.

PCE Inflation Data Expected to Provide Rate Clarity

On Wednesday, attention will shift towards the inflation data for October, which will be released at 10:00 AM ET (03:00 GMT). This reading, known as the Personal Consumption Expenditures (PCE) index, is the Federal Reserve’s preferred measure of inflation and is likely to play a crucial role in shaping the central bank's decision on whether to implement further interest rate cuts.

Analysts expect the inflation figures to show a steady rise in October, keeping above the Fed’s annual target of 2%.

Concerns regarding persistent U.S. inflation have stirred some doubts about the extent to which the Fed can proceed with rate cuts. Speculation surrounding a potential 25 basis point cut in December has also been tempered.

The skepticism has been supported by the recently released minutes from the Fed’s early-November meeting, which demonstrated a division among policymakers about future rate cuts while advocating for a gradual approach to easing.

Technology Sector Gains Help Wall Street Overcome Tariff Fears

Strong performances from major technology stocks propelled Wall Street indexes to record highs, despite Trump's tariff threats. The Nasdaq climbed by 0.6% to a record high of 19,172.81 points, while the S&P 500 rose 0.3% to an all-time high of 44,860.31 points, closing near previous peaks.

Among the so-called Magnificent Seven tech stocks, five closed higher, with Amazon.com Inc. surging over 3% after reports surfaced that the company plans to reduce its reliance on NVIDIA Corporation by developing its own custom artificial intelligence chips.

After-Hours Market Movements: HP and Dell Slide

In after-hours trading, notable movers included HP Inc., which fell by 7.2% after releasing disappointing guidance for 2025. Similarly, Dell Technologies was down 10% following a revenue miss for the quarter.

Autodesk Inc. dropped nearly 10% in after-hours trading, despite its earnings exceeding expectations, while Workday Inc. decreased by 8% as a result of disappointing guidance.

stocks, inflation, market