US stock futures slip lower; hefty gains in 2024 likely
Investing.com — U.S. stock futures slipped lower Monday, weighed by profit-taking as a largely positive 2024 draws to a close.
By 06:25 ET (11:25 GMT), the Dow Futures contract was down 55 points, or 0.1%, S&P 500 Futures traded 9 points, or 0.2%, lower and Nasdaq 100 Futures dropped 34 points, or 0.2%.
The major averages are set to close 2024 near record levels, with the S&P 500 and Dow Jones Industrial Average up more than 25% and 14%, respectively, and on track for the best year since 2021. The NASDAQ Composite has gained more than 31%.
The benchmarks are also headed for a winning fourth quarter, in the wake of Donald Trump’s election win, with the Nasdaq on pace for its longest quarterly winning streak since the second quarter of 2021.
Fed to cut in March – Goldman
The economic data slate Monday includes pending home sales for November as well as the December Chicago PMI, but activity is likely to be limited with the market closed on Wednesday.
Goldman Sachs predicts that the Federal Reserve will deliver its next interest rate cut of 25 basis points in March 2025.
The bank said in a note Friday that the move is expected to be followed by two additional cuts of the same magnitude in June and September.
“We expect the Fed to deliver its next 25bp cut in March followed by two more 25bp cuts in June and September to a terminal rate range of 3.5-3.75%,” the bank wrote.
Goldman also anticipates that the Fed will slow its balance sheet runoff in January 2025 and halt it entirely by the second quarter.
Boeing slumps after South Korea crash
Boeing (NYSE:BA) shares fell more than 4% in premarket trading Monday after a devastating air accident in South Korea claimed the lives of 179 people on Sunday when a passenger plane crash-landed at Muan International Airport.
The aircraft, a Boeing 737-800, skidded off the runway, colliding with a wall and erupting in flames, making it the deadliest aviation disaster in the country’s history.
Crude heads for annual losses
Crude prices slipped slightly Monday in thin holiday-impacted trade at the start of the final week of the year.
By 06:25 ET, the US crude futures (WTI) dropped 0.1% to $70.51 a barrel, while the Brent contract fell 0.2% to $73.67 a barrel.
Both benchmarks are on course for hefty losses in 2024, with the WTI contract down around 1.5% and Brent over 4% lower so far, largely on concerns over slowing demand in China, the world’s largest oil importer.