US Stock Futures: Capitol Hill and Fed Speakers in Focus
US stock futures posted strong gains during Monday’s Asian session. The Nasdaq 100 E-mini jumped 277 points, looking to snap a two-day losing streak. Meanwhile, the Dow Jones E-mini gained 112 points, while the S&P 500 E-mini advanced 45 points.
Later on Monday, markets will continue to react to reports from Capitol Hill, with Fed speakers also in the spotlight.
A bipartisan US Senate and the House sending the bill to President Trump’s desk could lift sentiment. However, US futures indices remain exposed to any roadblocks, given market optimism over the House greenlighting the bill.
Meanwhile, traders should closely monitor FOMC members’ speeches for views on the economic outlook, inflation, and rate cuts.
Last week, US job cuts, consumer sentiment, and inflation expectation figures underscored rising stagflation risk, weighing on risk appetite. According to the weekly Challenger report, job cuts soared from 54.064k in September to 153.074k in October, while the Michigan Consumer Sentiment Index fell from 53.6 in October to 50.3 in November.
A deteriorating labor market and waning sentiment could curb wage growth and cool consumer spending, which accounts for around 65% of US GDP. Elevated inflation and a slowing economy would raise risks of stagflation. The reopening could return US government workers to the office, resume salary payments, and restore some consumer confidence.
Key Technical Levels for Dow Jones, Nasdaq 100, and S&P 500
Despite recent market volatility, US stock futures traded above key technical levels, signaling a moderately bullish bias.
Near-term trends will hinge on Fed commentary, Capitol Hill, and incoming US data. Key levels traders should monitor include:
Dow Jones
- Resistance: 47,250, 47,500, and the October 28 record high of 48,214.
- Support: 47,000 and the 50-day EMA (46,578).