Stock Index Futures Climb with PMI and Fed Policy in Focus

U.S. equity index futures are trading higher, with investors refocusing on upcoming macroeconomic data after a modest pullback in the previous session. Attention is firmly on the manufacturing PMI, alongside ongoing interpretation of Federal Reserve policy signals.

Previous session

The prior trading day ended lower for both major indices. The S&P 500 moved toward the 6,850 area during the session, marking a pullback after setting a new all-time high. The Nasdaq approached the 25,150 level, testing the lower boundary of its medium-term ascending channel.

Today’s setup

In early trading, futures tied to the S&P 500 and Nasdaq are showing gains. S&P 500 futures are once again approaching the 6,900 level and the zone of record highs, with 6,800 acting as a key support area. Nasdaq futures are holding near 25,700 after rebounding from the lower boundary of a local upward channel. Initial support is seen around 25,500.

What is driving the market now?

• Ongoing investment in artificial intelligence, strong corporate earnings and expectations of potential rate cuts continue to support a constructive outlook for 2026.
• Recent FOMC minutes suggest the Federal Reserve remains open to further rate reductions, while maintaining caution due to inflation risks and internal policy differences.
• U.S. manufacturing PMI data for December is scheduled for release today.
• Initial jobless claims were reported slightly below market expectations.
• Investors are also awaiting the delayed release of U.S. construction spending data.

Sector performance

Cyclical sectors underperformed alongside the broader market in the previous session, with real estate, materials, industrials and retail-related ETFs leading the decline.

Growth-oriented sectors also moved lower, with semiconductors, recent IPOs, technology and cloud-related segments showing the weakest performance.

Defensive sectors recorded a more moderate pullback. Utilities led declines within the defensive space, while continuing to trade within a local upward channel.

Intermarket overview

Crude oil continues to trade within a rising channel, holding above the 57 level.

U.S. Treasury yields remain in a phase of local consolidation, stabilising near 4.15%.

Volatility remains subdued, with the VIX trading below 15 within a short-term descending channel.

Gold continues to move within a local upward channel, attempting to establish a foothold above the 4,400 level.