U.S. stock futures were little changed on Tuesday after Wall Street opened December on a soft note amid renewed risk-off sentiment. Markets remain focused on the Fed’s policy path, with over 85% of bets pointing to a 25bps cut at next week’s meeting. The Fed has now entered its blackout period. Data releases are also returning to normal following the government shutdown, with attention centered on the delayed September Personal Consumption Expenditures index, the central bank’s preferred inflation gauge, due later this week. Investors are additionally weighing the prospect of a leadership change at the Fed. President Trump said Sunday he has selected a replacement but gave no name, though White House economic adviser Kevin Hassett is widely viewed as the top contender. Most tech stocks fell as concerns over valuations and AI spending lingered. Still, Nvidia rose 1.7% after announcing an expanded tie with Synopsys and a USD 2 billion investment, sending Synopsys shares nearly 5% higher.
