U.S. Markets Tread Cautiously Amid Funding Bill and Fed Forecasts

U.S. stock futures were subdued following Congress's last-minute funding bill that avoided a government shutdown. The Federal Reserve's forecast of fewer interest rate cuts next year also impacted markets, along with a cooler-than-expected inflation report which temporarily eased concerns.

On Monday, U.S. stock futures remained uncertain after Congress passed a last-minute funding bill that averted a government shutdown. Investors began dissecting the Federal Reserve's latest forecast on interest rate cuts, which were less than previously anticipated.

The spending legislation passed just minutes after the previous funding expired, preventing potential disruptions to various national services. Despite a strong post-election rally, Wall Street hit a snag this month as the Fed's revised forecast predicted only two rate cuts for 2025, a decrease from earlier projections.

Economic data scheduled for later included consumer confidence readings, while the market watched movements such as Qualcomm shares rising in premarket trading. The trading volumes are expected to thin with holiday closures, entering the typical 'Santa Claus Rally' period, historically known for market gains.

(With inputs from agencies.)