Stock futures remain steady as investors await crucial inflation data
On the trading floor of the New York Stock Exchange (NYSE) in New York City, traders were busy on December 2, 2025, as they prepared for significant economic updates.
As of Thursday night, stock futures showed minimal movement, with traders eagerly anticipating inflation data that could influence the Federal Reserve's forthcoming interest rate decisions. Futures associated with the Dow Jones Industrial Average saw a slight increase of 3 points, or 0.01%. Meanwhile, both S&P futures and Nasdaq 100 futures hovered just above the neutral mark.
In the previous trading session, the S&P 500 and Nasdaq Composite experienced modest gains, while the Dow Jones Industrial Average closed slightly below the neutral line. Notably, the tech-heavy Nasdaq marked its eighth positive session out of the last nine, driven by a 3.4% rise in Meta shares and a 2.1% increase in Nvidia shares.
Traders are closely monitoring various economic indicators, particularly with the November payrolls report set to be released after the Fed's meeting on December 10. Earlier, investors reviewed a report from Challenger, Gray & Christmas, which indicated that job cuts in November surpassed 1 million for the year, attributed to factors such as corporate restructuring, advancements in artificial intelligence, and tariffs. Additionally, the latest weekly jobless claims report revealed that new applications for unemployment insurance reached their lowest level since September 2022, yet this did not dampen market sentiment during the trading day.
There is growing hope among investors that signs of a weakening labor market will prompt the Fed to consider a quarter percentage point rate cut at its next meeting. Current trading data suggests an 87% probability of this cut occurring next Wednesday, a significant increase compared to just a few weeks ago.
"The data we are receiving is mixed, and various signals are emerging. Inflation remains stubbornly high," stated Sonali Basak, chief investment strategist at iCapital, during an appearance on CNBC's "Closing Bell." "The year 2026 presents uncertainties regarding inflation, and no one can predict it with certainty. The labor market has generally maintained a 'low hire-low fire' approach, but if that changes, we could find ourselves in a challenging situation next year."
On Friday, the market will have the opportunity to analyze a new set of economic releases. The Commerce Department is expected to publish delayed data from September regarding consumer spending and income, along with the personal consumption expenditures index, which is regarded as the Fed's primary inflation measure. This PCE report will be the first since the unprecedented U.S. government shutdown. Additionally, the University of Michigan will release its consumer survey for December on the same day.
This week, stocks have managed to achieve slight gains, with the S&P 500 up 0.1%, while the Nasdaq and the 30-stock Dow have increased by nearly 0.6% and 0.3%, respectively.
Recent Stock Movements
In after-hours trading on Thursday, several companies made headlines:
- Ulta Beauty: Shares surged nearly 6% after exceeding Wall Street's expectations for the fiscal third quarter and raising its full-year forecasts. Ulta now anticipates annual revenue of $12.3 billion, an increase from the previous estimate of $12 billion to $12.1 billion, surpassing the consensus estimate of $12.13 billion. The company expects same-store sales growth for the year to be between 4.4% and 4.7%, up from an earlier estimate of 2.5% to 3.5%.
- Hewlett Packard Enterprise: The cloud services provider fell short of Wall Street's revenue expectations for the fourth quarter, resulting in an 8% drop in shares during after-hours trading. The company reported revenue of $9.68 billion, below the anticipated $9.94 billion. However, earnings for the quarter exceeded expectations.
- SoFi Technologies: The fintech company's stock declined by over 5% following the announcement of a $1.5 billion underwritten public offering of its common stock.
As the market continues to evolve, what are your thoughts on the potential impact of these economic indicators on the Fed's decisions? Are you optimistic about the future of the labor market and inflation trends?
