U.S. Stock Futures Slip as Investors Eye December Rate Cut, Possible Fed Leadership Change

U.S. stock futures fall as markets price in a possible December rate cut and speculate on a potential Federal Reserve leadership change. Nasdaq, S&P 500 dip in premarket trade.

U.S. stock futures decline as investors await key economic data and anticipate a possible Fed rate cut in December.

U.S. Stock Futures Slip as Investors Eye December Rate Cut, Possible Fed Leadership Change

1 Dec 2025 8:09 PM IST

On Monday, U. S. stock futures ticked down a notch as the markets were balancing between the slab of the Federal Reserve's interest-rate cut in December and the possibility of a change in Fed management that is already speculated on.

S&P 500 futures indicated a loss of 0.6% (–42 points) at the start of the premarket session, while the forecast for the Nasdaq 100 futures was down by 0.7% (–182 points) and Dow Jones futures were down by 0.5%. The market corrections mirror a temperament of caution among investors who are waiting for new economic signs and decision on U. S. monetary policy.

This move comes with President Trump’s already controversial decision to bring in a new Fed chair, which could mean that Jerome Powell is the one leaving. This change has put even more uncertainty into the market outlooks.

Global Markets Mixed; Volatility Rises

Signs of weakness were also seen among major global markets. Japan's stock market fell after the announcement that interest rates might be increased sooner than expected.

On the other hand, the volatility market was very active, with the VIX index soaring by more than 8% and indicating that traders were very nervous.

U. S. and global market trades are as follows:

Dow Jones: 47,458.32 (–0.54%)
S&P 500: 6,808.00 (–0.60%)
Nasdaq Composite: 23,179.62 (–0.80%)
Small Cap 2000: 2,470.26 (–1.21%)
MSCI World Index: down 0.52%

The markets in Latin America and Canada were also in the red, although Mexico’s IPC index managed to record slight gains.

Major Events Under Investors' Radar

Investors are on a lookout for the company’s economic data release next week, which consists of the following:

S&P Global Manufacturing PMI (Nov)
ISM Manufacturing PMI (Nov)
Construction Spending (MoM)
ISM Manufacturing Prices & Employment
Atlanta Fed GDPNow estimate

These indicators may provide the financial market with a glimpse of the Fed's future rate decision during the upcoming December meeting.

U.S. stock futures decline S&P 500 futures down Nasdaq 100 futures fall Dow Jones premarket Federal Reserve rate cut expectations Jerome Powell replacement speculation President Trump Fed decision market volatility rise VIX index jump ISM Manufacturing PMI economic data outlook global markets update U.S. monetary policy news.