Futures tied to the major U.S. equity indices traded modestly lower, pointing to a cautious start to the week as investors positioned themselves ahead of a heavy slate of economic releases, led by a long-awaited update on the labour market. Attention is also focused on potential shifts in market structure, with reports that Nasdaq is seeking regulatory approval to lengthen trading hours, while homebuilder Lennar is set to report earnings.
Futures signal early caution
U.S. equity futures edged down in early dealings, reflecting a defensive tone ahead of key macroeconomic data, particularly employment figures.
At around 02:45 ET, Dow futures were lower by 185 points, or 0.4%, S&P 500 futures slipped 47 points, or 0.7%, and Nasdaq 100 futures declined 261 points, or 1.0%.
The move follows a weak session on Wall Street, which marked a subdued start to the final full trading week of 2025. Attempts at a rebound on Monday faded quickly, as analysts continued to question the durability of the rally driven by artificial intelligence. Those concerns were reinforced by disappointing guidance and spending plans from AI-linked companies such as Broadcom (NASDAQ:AVGO) and Oracle (NYSE:ORCL).
Investors also weighed reports suggesting resistance to the potential appointment of White House economic adviser Kevin Hassett as Federal Reserve Chair. Hassett has been seen as supportive of President Donald Trump’s push for swift and aggressive rate cuts, though CNBC reported growing unease among some officials over his close ties to the administration.
By the end of Monday’s session, both the S&P 500 and the Nasdaq Composite had posted their steepest daily declines in more than three weeks.
Payrolls take centre stage
Market focus now turns to a series of U.S. economic indicators due later in the day, which could offer fresh insight into the health of the American economy and influence expectations for future Federal Reserve policy.
At the forefront is the November nonfarm payrolls report from the Bureau of Labor Statistics. Economists surveyed by Reuters forecast a relatively modest increase of around 35,000 jobs. The report will also incorporate October payroll data, which were not released at the time due to a data blackout during a record-length federal government shutdown.
A new unemployment rate will also be published. Because the shutdown lasted 43 days, October’s unemployment data were never collected, resulting in an unprecedented break in the series.
Additional releases scheduled include retail sales figures and a preliminary reading on business activity. Later in the week, the BLS is set to publish November consumer price inflation data, amid uncertainty over how much information from the cancelled October report will be reflected.
The data follow the Federal Reserve’s decision last week to cut interest rates by 25 basis points, aimed at supporting employment while inflation pressures remain stable, though elevated. Notably, policymakers did not have access to the latest economic data at the time, making this week’s releases potentially influential for the Fed’s policy outlook.
Nasdaq seeks extended trading hours – report
Nasdaq is reportedly seeking approval from U.S. regulators to significantly expand trading hours on its stock exchanges, potentially allowing trading for up to 23 hours a day on weekdays, according to Bloomberg News.
In a filing submitted to the Securities and Exchange Commission on Monday, Nasdaq requested authorisation to add an overnight trading session running from 9 p.m. to 4 a.m. ET, on top of its existing pre-market, regular and after-hours sessions.
The initiative reflects surging global demand for U.S. equities, prompting regulators to consider proposals to extend trading beyond traditional hours. U.S. stocks account for roughly two-thirds of global equity market value, while foreign ownership of U.S. shares reached $17 trillion last year, according to Nasdaq data cited by Reuters.
Nasdaq has also been exploring a shift towards near round-the-clock trading five days a week. Earlier this year, Nasdaq President Tal Cohen said discussions with regulators were under way, with any changes potentially taking effect in the second half of 2026.
Lennar earnings in focus
The corporate earnings calendar is relatively light, with the spotlight on results from homebuilder Lennar Corporation (NYSE:LEN), due after U.S. markets close.
In a note to clients, analysts at Vital Knowledge said sentiment around the stock remains “cautious,” as “the housing industry’s downturn looks set to persist for several more quarters given muted demand and margin headwinds.”
According to Bloomberg consensus estimates, Lennar is expected to report adjusted earnings of $2.24 per share on revenue of $9.1 billion for its fiscal fourth quarter, with net new orders forecast at 20,288.
The company posted a 46% drop in profit in the third quarter, pressured by stubborn inflation that has eroded housing affordability. Despite the Fed’s renewed rate-cutting cycle, U.S. government bond yields have remained relatively elevated, keeping mortgage rates high. Lennar has responded with sales incentives such as mortgage rate buydowns and pricing adjustments, though these measures risk squeezing margins.
Oil prices fall on Ukraine peace optimism
Oil prices moved lower as optimism grew over the possibility of progress toward a Russia–Ukraine peace agreement, raising the prospect of sanctions being eased.
Brent crude futures fell 1.2% to $59.82 a barrel, while U.S. West Texas Intermediate declined 1.3% to $55.95 a barrel.
U.S. officials have pointed to tentative advances in talks, with Ukraine reportedly willing to abandon its bid to join NATO — a key Russian demand — while Washington has offered security guarantees. However, negotiations over territorial concessions remain unresolved.
Any agreement could eventually lead to the lifting of U.S. sanctions on Russian oil producers, potentially adding supply to an already well-supplied global market.
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