US stock futures dip after weekly gains; rate cut bets, Fed reshuffle in focus

U.S. stock futures edged lower on Sunday evening after a week of modest gains, as investors weighed rising expectations for a Federal Reserve rate cut in December, and the market impact of a possible new Fed chair.

S&P 500 Futures inched 0.3% lower to 6,838.25 points, while Nasdaq 100 Futures fell 0.4% to 25,380.25 points by 19:37 ET (00:37 GMT). Dow Jones Futures traded 0.2% lower at 47,644.0 points.

Fed rate cut bets firm
Last week, Wall Street ended higher, with technology and retail stocks leading the advance. For the week, the S&P 500 rose 3.7%, and the NASDAQ Composite climbed nearly 5%. The Dow Jones Industrial Average also jumped more than 3%.

Investors have increasingly bet that the Fed will deliver a quarter-point interest-rate cut at its December meeting. The odds of a cut have soared to around 85% from roughly the mid-40s only a week ago.

Dovish signals from Fed officials — including comments from the New York Fed President and a Fed governor saying conditions may warrant a rate reduction — have helped fuel those expectations, though uncertainty remains given limited fresh data.

Fed chair appointment in focus
At the same time, markets are facing growing uncertainty about who may be tapped to lead the Fed next. President Donald Trump said on Sunday, “I know who I am going to pick” as a preferred replacement for current chair Jerome Powell.

President Donald Trump said Sunday he has decided on his pick for the next Federal Reserve chair after making clear he expects his nominee to deliver interest-rate cuts.

According to recent reports, the shortlist under consideration reportedly includes Kevin Hassett, former governor Kevin Warsh, and current governor Christopher Waller — among others.

A shift in leadership could influence the Fed’s policy trajectory significantly. If a more “dovish” candidate — one inclined toward earlier and deeper rate cuts — is selected, investors may grow more confident about looser monetary policy, which could further support equities, especially rate-sensitive sectors such as retail and growth stocks.