On Monday, US equity futures faced a downward trend as traders displayed a risk-averse attitude in anticipation of the penultimate trading session of 2024. The Dow Jones Industrial Average futures experienced a slip of 0.8%, while the S&P 500 futures saw a decline of 1%. The Nasdaq futures were similarly affected, dropping by 1.1%.
Meanwhile, oil prices showed a slight increase, with the front-month global benchmark, North Sea Brent crude, rising by 0.2% to reach $73.97 per barrel. Additionally, the US West Texas Intermediate crude price increased by 0.3%, bringing it to $70.83 per barrel. This uptick in oil prices may provide some support to energy sector stocks, but the broader equity market sentiment remains cautious.
Traders are closely monitoring the upcoming economic indicators that could influence market movements. The Chicago Fed Purchasing Managers' index is set for release at 9:45 am ET, with expectations pointing to an increase to 42.7 in December from a prior level of 40.2 in November, as compiled by estimates from Bloomberg.
Additionally, forecasters are predicting an increase in pending home sales, scheduled for 10 am ET. A rise of 0.9% is anticipated for November following a 2% increase noted in October. Such developments in housing market metrics are crucial, as they can significantly affect consumer confidence and spending in the economy.
Despite the adverse sentiment in equity markets and a potential slowdown indicated by mixed economic data, certain sectors, particularly energy, may still exhibit resilience as they react to oil price fluctuations. It will be essential for investors to stay informed about these key economic reports to gauge the direction of the markets ahead..