According to Yahoo News, Wall Street's index futures were mostly subdued on Friday as investors awaited Federal Reserve Chair Jerome Powell's comments, which are expected to provide clues on the interest rate path. This comes after the S&P 500 and Nasdaq finished November with their largest monthly gains since July 2022, and the Dow Jones rallied to close at its highest level since January 2022. Slowing U.S. consumer spending, dovish remarks from some Fed officials, and a strong earnings season contributed to the equity indexes' impressive performance in November.
Recent economic data, including Thursday's personal consumption expenditure index, indicated easing inflation in the world's largest economy, reinforcing hopes that the central bank would now halt its interest rate hiking cycle. Traders have fully priced in a pause in rate hikes for the upcoming December policy meeting, and they see a nearly 54% chance of at least a 25 basis point rate cut in March 2024 and about an 83% chance in May, according to CME Group's FedWatch tool. Market participants are now awaiting policy comments from Powell in a fireside chat, scheduled for 11:00 a.m. ET, for insights on the monetary policy trajectory. Other Fed officials, including Fed Governors Lisa Cook and Michael Barr and Chicago Fed President Austan Goolsbee, are also set to speak during the day.