U.S. equity futures slipped on Sunday after a strong rally last week, as traders reassessed expectations for a Federal Reserve rate cut in December and considered how a new Fed chair could influence the market.
S&P 500 futures fell by 0.3%, Nasdaq 100 futures declined 0.4%, and Dow Jones futures dropped 0.2%.
Markets had rallied sharply in the previous week, led by gains in technology and retail stocks. The S&P 500 advanced 3.7%, the Nasdaq rose nearly 5%, and the Dow climbed more than 3%. Investors are currently pricing in around an 85% chance that the Fed will cut rates by 25 basis points in December.
Attention is also shifting toward possible changes at the top of the Federal Reserve. President Trump has indicated that a successor to Jerome Powell has already been identified, with reported candidates including Kevin Hassett, Kevin Warsh, and Christopher Waller.
Analysts note that if the next Fed chair adopts a more dovish stance, expectations for further easing in 2025 could intensify. Such a scenario would likely support equities, particularly growth stocks and sectors that are highly sensitive to interest rate movements.