US Stock Market forecast: S&P 500, Nasdaq Composite, Dow Jones to be driven by inflation, jobs report

US stock indexes -- S&P 500, Nasdaq Composite, and Dow Jones Industrial Average -- are likely to witness sluggish movement on Monday as traders are cautious about Fed rate cuts probability, inflation and jobs report.

Traders at the Wall Street were contemplating a slower path of rate cuts in the wake of comments from Fed Chair Jerome Powell. Powell said Thursday that the Fed was in no hurry to cut rates, raising traders' concerns that there may not be a rate cut next month.

"Certainly Powell's speech has triggered some skepticism about the path of rates, with potentially December being a skip instead of another cut," Edward Jones senior investment strategist Angelo Kourkafas told AFP.


"But we do have another inflation and jobs report before that, so there is still a good sense we might see another rate cut in December," he added.

CBOE's volatility index, also known as Wall Street's fear gauge, hit 17.55 on Friday, the highest since Election Day on November 5.

"Market expectations for interest rate cuts have come down materially and also the market is readjusting after a pretty bullish reaction to the U.S. election," said Adam Rich, deputy chief investment officer for Vaughan Nelson in Houston.

FAQs

Q1. Which are three main US stock indexes?
A1. Three main US stock indexes are S&P 500, Nasdaq Composite, and Dow Jones Industrial Average.

Q2. What is Wall Street's fear gauge?
A2. Wall Street's fear gauge is CBOE's volatility index.