Dow Futures Edge Lower Ahead Of Powell Speech, Fed Rate Cut Odds Rise: TSLA, NIO, MSTR, MDB Among Stocks To Watch

• Fed rate cut probabilities rose ahead of the FOMC meeting. According to data from the CME FedWatch tool, the probability of a 25 basis point rate cut next week stood at 87.6% at the time of writing.
• Asian markets ended Monday’s trading session on a mixed note, with the Nikkei 225 declining the most at 1.96%.

U.S. stocks appear set for a negative opening on Monday as investors await commentary from the Federal Reserve Chair Jerome Powell later during the day.

Wall Street will watch Powell’s speech for insights ahead of the Federal Open Market Committee (FOMC) meeting scheduled for next week. 

Fed rate cut probabilities rose ahead of the FOMC meeting. According to data from the CME FedWatch tool, the likelihood of a 25 basis point rate cut next week stood at 87.6% at the time of writing, up from 84.4% a week ago.

Futures Decline

Dow Jones futures were down by 0.48%, the S&P 500 futures declined 0.63%, and the tech-heavy Nasdaq 100’s futures fell 0.78%. Futures of the Russell 2000 index were down by 0.82%.

Meanwhile, the SPDR S&P 500 ETF (SPY) was down 0.63% at the time of writing; Invesco QQQ Trust (QQQ) declined 0.77% on Monday morning; and SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.49%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

Asian Markets Mixed

Asian markets ended Monday’s trading session on a mixed note, with the Nikkei 225 declining the most at 1.96%, followed by the TWSE Capitalization Weighted Stock index at 1.04%, and the KOSPI at 0.16%.

The Shanghai Composite gained 0.65%, while the Hang Seng rose 0.57%.

Stocks To Watch

• Tesla Inc. (TSLA): Tesla shares were down more than 1% pre-market after the company’s November registrations fell by 58% in France and 49% in Denmark. However, the company’s sales in Norway from January to November set a new record, according to a Reuters report.
• Nio Inc. (NIO): Nio’s American Depository Receipts (ADR) fell around 4% pre-market after the company delivered 36,275 cars in November, up 46% year-on-year but down 10% month-on-month.
• Strategy Inc. (MSTR), Coinbase Global Inc. (COIN): Strategy, Coinbase stocks were down 4% pre-market, with Bitcoin prices falling over 5% in the last 24 hours, hovering around $86,600 at the time of writing.
• MongoDB Inc. (MDB), New Fortress Energy Inc. (NFE), and Credo Technology Group Holding (CRDO) are among the companies scheduled to report their latest quarterly earnings on Monday.

Also See: Goldman Sachs Reportedly Identifies Six Stocks That Are Favorites Of Mutual Funds And Hedge Funds

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