Turbulent Start to December as U.S. Stocks React to Economic Data

U.S. stock index futures opened December with losses after November's strong gains, amid anticipation of key economic data releases. Fed's interest rate decisions remain in focus, with traders assessing economic indicators ahead of the November nonfarm payrolls report. Market dynamics are influenced by Trump's policies and central bank's cues.

U.S. stock index futures began December on a downward trajectory following a robust November, as attention shifts to crucial economic reports this week, including key labor market data, which investors will scrutinize to determine the Federal Reserve's interest rate strategy.

Among the week's pivotal events is the forthcoming November nonfarm payrolls report, scheduled for release on Friday, which serves as a critical gauge of labor market health. According to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, robust data may reignite debates over potential rate reductions, while weaker figures could bolster prospects for a 25-basis-point cut by the Fed.

Trader sentiment indicates a more than 65% probability of a modest Fed rate cut later this month, in light of economic resilience, though this is down from a previous 83% likelihood, according to the CME's FedWatch Tool. Investors are also monitoring a slew of economic indicators, including October's job openings on Tuesday and Wednesday's private payrolls data.

(With inputs from agencies.)