Stock Futures Decline as Doubts Emerge on US Interest-Rate Cut

According to Yahoo News, stock futures experienced a pullback on Monday as uncertainty arose regarding the likelihood of a US interest-rate cut, with the crucial monthly jobs report approaching. S&P 500 futures dropped approximately 0.4% from a 2023 closing high recorded on Friday, while Dow Jones Industrial Average futures lost around 0.3%. Contracts on the tech-focused Nasdaq 100 were nearly 0.5% lower. Stocks have experienced a rally, resulting in five consecutive weekly gains, as investors maintained their belief that the Federal Reserve would initiate rate cuts early next year. These expectations have also contributed to a decline in Treasury yields in recent days, despite Fed Chair Jerome Powell dismissing discussions of an end to rate hikes. Both stocks and bonds are now retreating on Wall Street as an increasing number of analysts caution that the rally in these assets is excessive. The 10-year Treasury yield was up 5 basis points to approximately 4.25%. The November jobs report, set to be released on Friday, could potentially hinder the rally, depending on whether the data contradicts the idea that the Fed has concluded its rate hikes. A slowdown in the labor market is a crucial factor in policymakers' decision-making process. In other market news, hopes for a Fed pivot have contributed to a boost in bitcoin prices, surpassing $41,000, a level last seen prior to the 2022 crypto crash. Other digital currencies also experienced gains amid expectations that the SEC will approve US spot bitcoin ETFs in January. Additionally, spot gold on Monday increased over 3% to exceed $2,130 an ounce, achieving a new record high for the second consecutive day before reducing gains.