Market Moves: Wall Street Awaits Fed's Next Step Amid Economic Data and AI Concerns

US Stock Index Futures Slip as Investors Await Economic Data and Powell's Speech

US stock index futures dipped on Monday as investors kept a close eye on the upcoming release of fresh economic data and a critical speech from Federal Reserve Chair Jerome Powell.

Market Concerns Overshadow Gains

The modest gains recorded by the S&P 500 and Dow last month have been overshadowed by concerns of an AI-stock bubble and potential rate cuts.

• The tech-heavy Nasdaq experienced substantial losses in November, marking its largest decline since March.
• Persistent concerns over AI spending have weighed heavily on the market.

Upcoming Economic Data and Powell's Speech

Surveys by S&P Global and the Institute for Supply Management on US manufacturing activity are expected to provide valuable insights into the country's economic health.

Market volatility is likely to continue due to rising prices that are not aligning with investor expectations, according to Daniela Hathorn from Capital.com.

A clearer picture is expected to emerge once more data becomes available.

Rates and Inflation Metrics in Focus

Powell's upcoming remarks are crucial for gaining insights into potential rate changes.

• The market is keeping a close eye on inflation metrics.
• Potential Bank of Japan rate hikes are also being closely monitored.

Daniela Hathorn's Take: "Turbulence is expected to continue until clearer data emerges."