By Lisa Pauline Mattackal and Purvi Agarwal
(Reuters) -U.S. stocks were set for a subdued open on Tuesday as focus moved to key inflation data later in the week for more signals on the country’s economic and monetary policy outlook.
The three major indexes closed at record highs in the previous session as investors broadly expect President-elect Donald Trump’s proposed tax cuts and expectations of easier regulatory policies to help equities.
Some of the stocks expected to perform well under Trump’s presidency gave back gains. EV maker Tesla (NASDAQ:), which has soared nearly 40% since Nov. 5, fell 1.8% in premarket trading.
Futures tracking the small-cap lost 0.6% after the index closed at a three-year high on Monday. Trump Media & Technology Group’s shares fell 5.1%.
Some crypto stocks eased after soaring in the past few sessions as bitcoin pulled back after nearing the $90,000 mark. miners MARA Holdings and Riot Platforms (NASDAQ:) fell 3.2% and 4.6%, respectively.
“I don’t attribute it to much more than a little bit of profit taking after a fabulous week,” said Paul Nolte, senior wealth adviser and market strategist, Murphy & Sylvest.
Focus will now be on consumer price inflation data, due Wednesday, the first of several batches of data this week that will provide direction to the U.S. Federal Reserve’s policy path.
Markets have already dialed back expectations for interest rate reductions over the next year, given strong economic data and the possible inflationary impact of some of Trump’s policies.
Traders are still pricing in a strong chance – 65% – of a 25 basis point interest rate cut at the Fed’s December meeting, according to CME FedWatch.
Fed officials Christopher Waller, Thomas Barkin, Neel Kashkari and Patrick Harker are expected to speak later in the day, while Chair Jerome Powell is scheduled to speak on Thursday at an event in Dallas.
Dow E-minis were up 47 points, or 0.11%, E-minis were down 5 points, or 0.08%, and E-minis were down 5.75 points, or 0.03%.
Investors were also eyeing the possibility of a “Red Sweep” with one data provider projecting the Republican Party had won a majority in the U.S. House of Representatives, which would signal that Republicans would hold a majority in both chambers of Congress.
Home Depot (NYSE:) was up 1.6% after the home improvement retailer forecast a smaller drop in annual same-store sales.
Biotech firm Novavax (NASDAQ:) dropped 7.3% after cutting its annual revenue forecast due to lower-than-expected sales of its COVID-19 vaccine.
Grab Holdings (NASDAQ:) jumped 10.1% after the Southeast Asian tech firm raised its forecast for fiscal 2024 revenue.
Shopify (NYSE:)’s U.S.-listed shares climbed 14% after the Canadian tech firm beat analysts’ estimates for third-quarter revenue.
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