Stock market news today: Stock futures dip as Fed rate hopes dim

Stock futures on Wall Street fell amid the best rally of the year as trust fades that the Federal Reserve will not raise interest rates again this year.

Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) futures fell about 0.3%, on the verge of losing control of a notable stretch of profits. Tech-heavy Nasdaq 100 futures (^NDX) fell more than 0.2%

Signs of a weaker US economy suggested to the market that the Federal Reserve could ease its tightening campaign. But investors were reassessing those hopes after Minneapolis Fed President Neel Kashkari said Monday that the central bank I probably have more work ahead of me. to control inflation.

"There was quite a bit of euphoria late last week over the belief that the Federal Reserve is done, that the labor market is slowing and that the U.S. economy is going to experience a soft landing," said Michael Hewson, chief market analyst at CMC Markets UK told Reuters. "People have started to see a little bit more clearly. There is a risk that the Fed could hike again."

Investors will be watching for clues about policymakers' thinking when the heads of the Kansas City and Dallas Feds speak on Tuesday, and then when Chairman Jerome Powell takes office later in the week.

The Fed's fresh doubts clouded the oil outlook, helping to boost WTI crude prices. below $80 a barrel for the first time in more than two months despite the prospect of supply cuts from Saudi Arabia and Russia. West Texas Intermediate Crude Oil Futures (CL=F) and Brent crude futures (BZ=F) both sank almost 2%, to $79.30 and $83.52 a barrel, respectively.

Also dragging on oil were trade data showing China's decline in Exports accelerated unexpectedly. in October, a sign that foreign demand was declining, while its imports increased. But there was a bright spot for the world's second-largest economy when the IMF upgraded its GDP growth forecasts for the country this year and next.

In corporate news, WeWork (US) on Monday declared bankrupt after the once most valuable American startup had to deal with expensive leases. Its shares have fallen about 98% this year.

Meanwhile, earnings season continues with Uber reports (UBER) and Rivian (RIVN) on Tuesday's agenda, ahead of the highly followed Disney (DIS) results to be delivered on Wednesday.

k

Stock Futures Lose Ground as Fed Rate Hopes Dim

The rally in US stocks was on the verge of losing momentum on Tuesday as confidence in a pause in rate hikes by the Federal Reserve began to fade.

Futures on the Dow Jones Industrial Average (^DJI) fell 0.28%, or 94 points, while the S&P 500 (^GSPC) futures fell 0.25%. Contracts on the high-tech Nasdaq 100 (^NDX) fell 0.11%.