Futures inch up as investors pin hopes on Fed rate cuts

The benchmark S&P 500 trades just 1.2% shy of its all-time closing high as traders price in an aggressive timetable for interest rate cuts next year after Fed Chair Jerome Powell said last week the historic tightening of monetary policy is likely over. Despite attempts by policymakers to temper the optimism since, traders have priced in a 67% chance of the Fed cutting rates by 25 basis points in March, as per the CMEGroup's FedWatch tool, and cuts of 143 bps by December 2024. Investors are awaiting a slew of economic data this week, with focus on the final reading of third-quarter GDP on Thursday, followed by monthly personal consumption expenditure index (PCE) on Friday, the Fed's preferred inflation gauge.