Stock market today: Dow, S&P 500, Nasdaq futures sell off as government shutdown looms, Fed's preferred inflation gauge on deck
Published On Dec 20, 2024, 7:37 AM
US stock futures are seeing declines this morning as uncertainty increases around a potential government shutdown after the House rejected a spending bill. The market is also reacting to upcoming key inflation data, which could influence monetary policy, particularly after the Federal Reserve signaled it will cut interest rates more cautiously than expected. Major indices including the S&P 500 and Nasdaq are anticipated to open lower, reflecting concerns over economic policy and company-specific issues, particularly in the tech sector.
Stock Forecasts
SPY
Negative
The rejection of the spending bill increases uncertainty, which typically leads to stock sell-offs as investors seek to avoid risk. Additionally, the anticipated inflation data may not provide the reassurance needed for a rebound, leading to cautious trading in major tech stocks.
QQQ
Negative
The decline in technology stocks, particularly those exposed to global supply chains and consumer sentiment, is evident. With the risks presented by government shutdown fears, these stocks may continue to see selling pressures.
Related News
The sharp reaction to the Fed could be an ominous sign for markets in 2025: Morning Brief
Dec 20, 2024, 6:00 AM
Fed Chair Jay Powell did nothing particularly surprising on Wednesday, but markets reacted sharply. The strong reaction does not portend smooth sailing in the year ahead as the uncertainty Powell referenced arrives.
Trump Tariffs? Europe Braces but Has No Clear Strategy
Dec 20, 2024, 3:18 AM
The incoming president promised “tariffs all the way” unless Europe bought more U.S. oil and gas. European officials have no clear strategy for avoiding a trade war.
The Fed's 'pivot' brought market uncertainty to the forefront
Dec 19, 2024, 3:12 PM
The Federal Reserve's hawkish comments about uncertainty in the rate path ahead spooked investors.