Dow futures fall, Nasdaq rises as Wall Street assesses 2025 Fed rate path

Stock futures started a mixed short trading week as investors considered the path of interest rates next year after the Federal Reserve hinted they would stay high for longer.

Futures contracts linked to the S&P 500 Index (S = f(embraced the straight line, while those on the high-tech NASDAQ)q = f) It rose by 0.3%. Dow Jones Industrial Average Futures (yum = wow) lost 0.3%.

Wall Street is coming out An upbeat Friday but a pessimistic – and volatile – weekwith all three major averages above 1% on Friday but down about 2% during the week. The Fed is playing the Grinch, signaling that it will step back from the pace of cutting next year, sending stocks into one of their worst days of the year on Wednesday.

But on Friday, the Fed’s preferred measure of inflation, the Personal Consumption Expenditures Index, showed More cooling on the inflation front -If there is still some stickiness. However, he is the only opponent of the Fed’s move to cut interest rates last week She said she voted against Lowering interest rates because “there is more work to be done on inflation.”

Right now, according to the CME FedWatch tool, investors are betting on the Fed keeping interest rates steady next month. For the subsequent meeting in March, bets are around 50-50 on demotion versus suspension.

But this week’s light schedule will provide some relief and an opportunity for Wall Street to digest and reflect heading into 2025. Markets will close at 1pm EST on Tuesday, followed by the Christmas holiday on Wednesday.