US stock futures showed limited movements today, following gains that spanned over seven consecutive weeks as monetary policy expectations continued to change.
The market could continue to record gains as traders bet on interest rate cuts early next year. The Federal Reserve’s stance and economic projections have encouraged a risk-on market sentiment and could boost the market’s rally through December.
However, some risks could remain for the market after Federal Reserve members spoke against interest rate cuts. In the meantime, falling treasuries yields could support the stock market’s performance while traders turn their attention to major economic data releases this week, with US inflation data, particularly the PCE potentially affecting expectations.
Last week, almost all sectors, led by the rate-sensitive real estate sector, recorded gains. The energy sector rebounded as well after a period of underperformance thanks to higher prices in oil markets.
The technology sector continues to lead in annual performance as the year draws to a close, with mega-cap companies driving market gains.
In the technology sector, Apple could face new challenges in the Chinese market, as more Chinese agencies and government-backed firms are instructing staff to avoid using iPhones and other foreign devices at work.
The ban could weigh on Apple’s stock performance and on its sales in China.