Futures tied to major U.S. stock indices traded slightly higher, with markets preparing for a busy week featuring central bank interest rate decisions worldwide and the release of delayed U.S. economic data following an extended federal government shutdown. Renewed stress in China’s property sector also weighed on sentiment after China Vanke failed to secure sufficient bondholder approval to defer debt repayments. Meanwhile, SpaceX is reported to be laying the groundwork for a potential stock market debut, while oil prices moved marginally higher.
Futures point upward
U.S. equity futures posted modest gains on Monday as investors moved into one of the final full trading weeks of the year ahead of typical year-end portfolio adjustments.
By 02:48 ET, Dow Jones futures were higher by 126 points, or 0.3%, S&P 500 futures gained 14 points, or 0.2%, and Nasdaq 100 futures added 28 points, or 0.1%.
Wall Street ended the previous week lower, with the S&P 500 pulling back from a record closing high reached on Thursday. Sentiment was dampened by underwhelming quarterly results from AI-focused heavyweights Oracle (NYSE:ORCL) and Broadcom (NASDAQ:AVGO), which renewed concerns about the longevity of elevated spending on artificial intelligence.
Investors are also reassessing the broader economic outlook as they attempt to gauge the future direction of Federal Reserve policy following last week’s 25-basis-point interest rate cut.
Delayed U.S. data back in focus
Markets are expected to gain additional clarity this week as several U.S. economic indicators delayed by the record-long government shutdown are finally released.
The November employment report is due on Tuesday, with economists polled by Reuters forecasting a relatively soft increase of 35,000 jobs. October nonfarm payroll figures, which were not released due to the shutdown-related data blackout, will be included in the November report.
An updated unemployment rate is also set to be published after the 43-day shutdown prevented October data collection.
“Any softer-than-expected data here could bring forward pricing of the next Fed rate cut,” analysts at ING noted.
Investors will also monitor a key monthly inflation reading that is widely used to track consumer price trends in the U.S.
For the Federal Reserve, labour market conditions have increasingly taken priority over still-elevated inflation. While several indicators suggest cooling employment, the absence of comprehensive official data in recent months has forced policymakers and markets to rely more heavily on alternative measures.
China Vanke pressures property stocks
Shares of China Vanke declined after the developer failed to gain sufficient bondholder support to extend repayment of a major bond, reviving fears of a worsening debt crisis in China’s property sector.
Vanke shares fell 2.8% in Shenzhen trading after disclosures showed that creditors largely rejected a proposal to delay repayment of a bond due Monday by one year.
The company now faces a five-business-day grace period to repay 2 billion yuan ($280 million) or risk default.
As a state-backed developer, a potential default by Vanke would mark the most significant failure yet in China’s struggling real estate industry, potentially eclipsing earlier collapses by privately owned firms such as Evergrande and Country Garden.
Other property stocks also came under pressure, with New World Development Co Ltd dropping 3.0% in Hong Kong and China CITIC Construction sliding 1.0%.
SpaceX said to be preparing IPO groundwork
According to a report from the Wall Street Journal, SpaceX executives have begun engaging with Wall Street banks to seek advisory support for a potential initial public offering.
Investment banks are expected to present preliminary IPO proposals in the coming weeks, and recent estimates suggest a listing could value SpaceX at more than $1 trillion.
Founder and Chief Executive Elon Musk confirmed last week that an IPO remains under consideration, with the WSJ also reporting that employees have been informed of possible preparations.
SpaceX is a major supplier of space technology to the U.S. government and has expanded rapidly through its Starlink satellite internet business.
Oil prices edge higher
Oil prices recorded modest gains, rebounding slightly after steep declines last week. Traders weighed the possibility of supply disruptions linked to rising tensions between the U.S. and Venezuela, alongside speculation around a potential peace agreement between Russia and Ukraine.
Brent crude futures were last up 0.2% at $61.24 a barrel, while U.S. West Texas Intermediate crude rose 0.3% to $57.39 a barrel.
Both benchmarks dropped more than 4% last week, largely driven by concerns that global crude supply growth is outpacing demand.
