The March S&P 500 E-Mini futures (ESH26) are showing a slight decrease of -0.02% today as investors are approaching the market cautiously ahead of the release of the Federal Reserve’s December meeting minutes. Yesterday’s trading session saw Wall Street’s main stock indexes closing in the red. Among the Magnificent Seven stocks, Tesla (TSLA) led the losers in the Nasdaq 100 with a decline of over -3%, while Nvidia (NVDA) dropped more than -1%. Additionally, gold mining stocks took a hit as gold prices fell due to profit-taking, with Newmont (NEM) leading the losers in the S&P 500 with a slide of over -5% and Freeport-McMoran (FCX) falling nearly -3%.
In other news, Ultragenyx Pharmaceutical (RARE) plummeted over -42% after its treatment candidate for the rare genetic bone disease osteogenesis imperfecta failed to meet its primary endpoint in two late-stage trials. On the positive side, DigitalBridge Group (DBRG) surged more than +9% after SoftBank Group announced its agreement to acquire the company in a deal valued at $4 billion.
Economic data released on Monday revealed that U.S. pending home sales rose by +3.3% m/m in November, surpassing expectations of +1.0% m/m. Looking ahead, market analysts are closely monitoring the release of the minutes from the Federal Reserve’s December 9-10 meeting. These minutes will provide insights into policymakers’ stance on potential rate cuts. While the FOMC lowered its benchmark rate for the third consecutive time this month, individual projections varied, with some officials anticipating no cuts and others expecting two quarter-point cuts next year.
Goldman Sachs economists anticipate ongoing disagreement among FOMC participants regarding the appropriate policy path in the near term. U.S. rate futures currently indicate at least two rate cuts in 2026, with the first not expected before April or June. In terms of economic data, investors are awaiting the U.S. S&P/CS HPI Composite – 20 n.s.a. figures and the U.S. Chicago PMI data today.
In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.119%, reflecting a +0.05% increase. The Euro Stoxx 50 Index is up +0.42% today, reaching a 6-week high on the last full trading day of the year. Mining and bank stocks led the gains on Tuesday, with Spain’s annual inflation rate cooling in December but remaining above the euro-area average.
Asian stock markets closed mixed today, with China’s Shanghai Composite Index closing flat and Japan’s Nikkei 225 Stock Index down -0.37%. China’s Shanghai Composite Index snapped a nine-day winning streak as investors took profits after a strong run. Semiconductor and AI-related stocks outperformed, while property and insurance stocks slumped. The Nikkei 225 Stock Index in Japan closed lower today, impacted by metals and brokerage stocks. Japanese financial markets are closed for the New Year holidays.
In pre-market trading, Tesla (TSLA) rose about +1%, gold mining stocks are moving higher, and Terra Innovatum Global N.V. (NKLR) climbed over +9%. BHP Group (BHP) rose more than +1% after an upgrade by Argus. Today’s U.S. earnings spotlight features Immersion Corp (IMMR), RCI Hospitality (RICK), and Brookmount Explorations Inc (BMXI).
Please note that the information provided in this article is for informational purposes only. The original article was published on Barchart.com.
