U.S. Stock Markets Rise in Anticipation of Federal Reserve Meeting

U.S. stocks climbed on Monday, trading in narrow ranges as investors awaited the Federal Reserve’s final policy meeting of 2024.

In early trading, Dow Jones futures were up about 50 points, or 0.1%, S&P 500 futures were up about 8 points, or 0.1%, and Nasdaq 100 futures increased by approximately 55 points, or 0.3%.

Futures remained subdued following Friday’s weak session on Wall Street, where recent economic data showed that inflation held steady in November, a factor that could influence the Federal Reserve’s strategy on interest rate reductions.

Fed Rate Cut in Focus for 2024

The Federal Reserve is widely expected to lower interest rates by 25 basis points at the conclusion of its two-day meeting on Wednesday, continuing the easing cycle it began earlier this year.

This reduction would bring the total rate cuts for 2024 to 100 basis points.

The focus this week, however, will be on the Fed’s guidance for future rate reductions, particularly given the persistent inflation and the resilience of the labor market.

Most analysts expect the central bank to signal a more measured pace of rate cuts in 2025, a sentiment supported by recent remarks from Federal Reserve officials.

According to CME FedWatch, there is a 79.7% chance that the Fed will leave rates unchanged at its January meeting.

MicroStrategy in the Spotlight

In the corporate sector, MicroStrategy (MSTR) is expected to attract attention following the announcement of its inclusion in the Nasdaq 100 index.

Capri Holdings (CPRI) shares surged in premarket trading Monday after Women’s Wear Daily reported that the company is exploring potential buyers for its Versace and Jimmy Choo brands. Capri Holdings is collaborating with Barclays (BARC) to facilitate the process.

While talks are still in the early stages, it remains unclear whether the two brands will be sold together, separately, or as part of a larger package.

Crude Oil Prices Retreat on Chinese Disappointment

Crude oil prices fell on Monday, giving up some of last week’s gains. This decline followed the release of disappointing Chinese economic data and came amid anticipation of the Federal Reserve’s upcoming monetary policy decision.

Concerns over weak demand, particularly from China—the world’s largest crude oil importer—have limited oil price gains. As China’s economic performance continues to underwhelm, traders are cautious about the global demand outlook.