Stock Futures Hold Steady as Wall Street Extends Winning Streak Ahead of Fed Meeting
US stock futures were little changed on Monday as Wall Street heads into the final Federal Reserve meeting of 2025 after back-to-back weekly gains. Investors track rate-cut expectations, Confluent’s $11 billion IBM deal, and key earnings from Lululemon, Costco, Oracle, Adobe, and Broadcom.
Traders on the floor of the New York Stock Exchange as US stock futures hold steady ahead of the Federal Reserve’s final policy meeting of 2025.
Stock index futures were mostly unaltered on Monday, ahead of the Federal Reserve's initiation of its last policy session this year, after two weeks during which all major indices became gains. Dow Jones Industrial Average futures fetched 25 points, S&P 500 and Nasdaq 100 each were 0.1% and 0.2% higher.
Wall Street Extends Positive Momentum
The muted start to the week follows another strong performance for equities:
- Dow: +0.5% last week
- Nasdaq Composite: +0.9%
- S&P 500: +0.3%, now just 0.7% shy of an all-time intraday high
Both the S&P 500 and Nasdaq posted four-day winning streaks, while the Dow closed higher in three of the past four sessions.
Markets rallied on Friday after September’s delayed core PCE inflation report came in softer than expected—one of the final key data points before the Fed meeting.
Rate-Cut Hopes Build Ahead of FOMC Decision
Investor expectations for a December rate cut have surged. Fed funds futures now price in nearly a 90% chance of a cut—up sharply from 67% a month earlier, according to CME FedWatch.
Eric Freedman, CIO at Northern Trust Wealth Management, said markets are appropriately focused on whether the Fed opts for a rate cut or holds steady but noted that investors are “more interested in voting-member outlooks and future Fed leadership.”
While no major economic reports are scheduled for Monday, the New York Fed will release its consumer expectations survey, which may influence sentiment.
Earnings to Watch This Week
A busy slate of corporate results is expected from:
- Lululemon
- Costco
- Broadcom
- Oracle
- Adobe
- Confluent Shares Surge as IBM Confirms $11 Billion Acquisition
IBM announced Monday it will acquire Confluent, a leading real-time data streaming platform, in an $11 billion deal.
Confluent (CFLT): +26% premarket
IBM: –1% premarket
The acquisition marks one of IBM’s largest moves in its AI-focused expansion strategy.
Truist Upgrades Five Below, Sees 25% Upside
Truist upgraded Five Below (FIVE) to Buy from Hold, raising its price target from $179 to $216, citing the retailer’s “unicorn-like growth” and improving operating efficiencies.
- Despite a 65% year-to-date rally, analysts say the stock still trades below historical valuation averages.
- Bank of America Raises Carvana Price Target After S&P 500 Inclusion
- Bank of America expects Carvana (CVNA) to extend its massive 2025 rally as it prepares to join the S&P 500 on December 22.
BofA reiterated Buy
Raised price target from $385 to $455, signaling 13.8% upside
Analysts said S&P 500 inclusion typically boosts demand as index funds and ETFs are required to buy shares.
