Futures on Wall Street’s main index fell on Friday as investors faced the possibility of a U.S. government shutdown and a higher-than-expected interest rate ahead of a key inflation report.
Dozens of Republicans rejected President-elect Donald Trump’s spending bill Thursday, leaving Congress without a clear plan before government funding expires at midnight.
Trump’s plans for tariffs, tax cuts and deregulation were among the factors that led the Federal Reserve to raise its inflation forecast for 2025 and halve its interest rate cut projections, which hit Wall Street on Wednesday.
Investors will watch the PCE Index report at 10:30 a.m. EDT for clues on how inflation will drive the Fed’s monetary policy. The data is expected to show U.S. consumer spending rose 0.2% in November , at the same pace as the previous month.
Traders currently expect fewer than two Fed rate cuts by the end of next year, after the U.S. central bank cut rates by 0.25 percentage points as expected this week.
S&P 500 futures fell 0.76%, while Nasdaq 100 futures fell 1.27% and Dow Jones futures fell 0.45%.
The Nasdaq was on track to fall for the first time in five weeks and the S&P 500 could post its worst week since September. The Dow Jones could post its biggest weekly decline since March 2023.
Source: Terra
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