The US stock market displayed positive momentum ahead of Monday's trading session, with traders focused on an imminent policy announcement from the Federal Reserve and an important inflation report set to release later in the week. In premarket trading, both the Standard & Poor's 500 and the Nasdaq saw an increase of 0.2%, while the Dow Jones Industrial Average experienced a slight rise of 0.1%.
Meanwhile, exchanges in Asia and Europe indicated declines. The Federal Reserve's meeting of its monetary policy committee is scheduled to commence on Tuesday, culminating in an interest rate decision on Wednesday. Market sentiment largely anticipates a reduction in interest rates by 25 basis points, as indicated by the CME FedWatch tool. Additionally, the anticipated report on personal income and expenditures for November will be released on Friday.
This report will highlight the personal consumption expenditure core price index, which is the Federal Reserve's preferred gauge for inflation. On Monday’s economic agenda, the Empire State Manufacturing Index for December is set to be announced at 8:30 am ET, followed by the purchasing managers' index report from S&P Global at 9:45 am. In stock movements, MicroStrategy's shares ($MSTR) rose by 3.7% pre-bell, while shares of Palo Alto Networks ($PANW) saw a marginal increase of 0.4%.
Conversely, Super Micro Computer's ($SMCI) stock experienced a significant decline of 13%. Several prominent companies, including Accenture ($ACN), Nike ($NKE), Micron Technology ($MU), Cintas ($CTAS), FedEx ($FDX), Lennar ($LEN), General Mills ($GIS), and Carnival ($CCL, $CUK), are scheduled to announce their latest financial results later this week. As trading commenced, Bitcoin recorded a 0.5% increase, reaching $103,662, while West Texas Intermediate crude oil reported a decrease of 1%, settling at $70.56 per barrel.
The yield on 10-year Treasuries fell by 2.4 basis points, standing at 4.38%, and gold prices rose by 0.2%, now at $2,681 per ounce..