Futures linked to the main U.S. equity benchmarks were modestly higher, with investors preparing for a week packed with potential market-moving events. The agenda includes multiple interest rate decisions from central banks around the world, alongside the release of U.S. economic data that had been postponed due to a prolonged federal government shutdown. Elsewhere, renewed worries over China’s property sector surfaced after China Vanke failed to secure sufficient creditor backing to delay debt repayments. In corporate news, SpaceX is said to be taking early steps toward a possible stock market listing, while oil prices posted small gains.
Futures point higher
U.S. equity futures edged up on Monday as traders entered one of the final full trading weeks before year-end positioning begins in earnest.
By 02:48 ET, Dow futures were up 126 points, or 0.3%, S&P 500 futures rose 14 points, or 0.2%, and Nasdaq 100 futures gained 28 points, or 0.1%.
Wall Street ended the previous week on a weaker note, with the S&P 500 retreating from a record closing high reached on Thursday. Sentiment was weighed down by disappointing quarterly updates from AI-linked heavyweights Oracle (NYSE:ORCL) and Broadcom (NASDAQ:AVGO), which reignited questions over the durability of heavy spending on artificial intelligence.
Investors were also reassessing the broader economic outlook as they looked for signals on the future path of Federal Reserve policy, following the central bank’s decision last Wednesday to cut interest rates by 25 basis points.
Delayed U.S. economic data in focus
Greater clarity may emerge in the days ahead as a series of U.S. economic releases delayed by the record-length federal government shutdown finally hit the wires.
On Tuesday, the November employment report is due, with economists surveyed by Reuters expecting payroll growth of a modest 35,000 jobs. October nonfarm payrolls, which were not released because of the shutdown-related data freeze, will be incorporated into the November figures.
An updated unemployment rate is also scheduled for release, after the government’s 43-day shutdown prevented October data from being collected.
“Any softer-than-expected data here could bring forward pricing of the next Fed rate cut,” analysts at ING said in a note.
Markets will also digest a key monthly inflation reading, widely used to track consumer price pressures in the U.S.
For the Federal Reserve, labour market conditions have taken precedence over persistently elevated inflation. While several indicators have pointed to a cooling jobs market, the lack of comprehensive official data in recent months has forced policymakers and investors to rely more heavily on alternative measures.
China Vanke shares slide
Shares in China Vanke fell on Monday after the property developer failed to win enough support from bondholders to extend a major repayment, reviving fears of a deepening debt crisis in China’s real estate sector.
Vanke shares dropped 2.8% in Shenzhen trading after filings showed creditors largely rejected a proposal to delay repayment of a bond maturing Monday by one year.
The company now faces a five-business-day grace period to repay 2 billion yuan ($280 million), or risk default.
Vanke had disclosed in November that it was seeking to restructure parts of its debt, a move that has again raised concerns about the durability of China’s property market recovery. As a state-backed developer, Vanke would represent the most significant default to date, potentially surpassing the impact of earlier collapses by private-sector peers such as Evergrande and Country Garden.
Other property stocks also weakened. New World Development Co Ltd slid 3.0% in Hong Kong, while China CITIC Construction fell 1.0%.
SpaceX reportedly explores IPO preparations
SpaceX executives have begun the process of sounding out Wall Street banks for advisory roles on a potential initial public offering, according to a report from the Wall Street Journal on Sunday.
Investment banks are expected to present initial IPO pitches in the coming weeks. Recent reports suggest a listing could value SpaceX at more than $1 trillion.
Founder and CEO Elon Musk confirmed last week that an IPO was under consideration, and the WSJ previously reported that employees had been informed of preparations for a possible flotation.
SpaceX is a major supplier of space technology to the U.S. government and has also seen rapid growth in its Starlink satellite internet business.
Oil prices edge higher
Oil prices posted modest gains, recovering slightly after sharp declines last week. Traders weighed the risk of potential supply disruptions stemming from escalating tensions between the U.S. and Venezuela, alongside speculation around a possible peace agreement between Russia and Ukraine.
Brent crude futures were last up 0.2% at $61.24 a barrel, while U.S. West Texas Intermediate crude rose 0.3% to $57.39 a barrel.
Both benchmarks fell more than 4% last week, largely driven by concerns that global oil supply is expanding faster than demand.