Futures Flat Ahead Of Key Inflation Print Which May Usher Rate Cuts As Soon As March

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by Tyler Durden
Friday, Dec 22, 2023 - 01:18 PM

US equity futures were slightly lower, bond yields dropped ahead of the release of a the Fed's favorite inflation metric, the core PCE, which could cement the case for Federal Reserve interest-rate cuts as soon as March which in turn will unleash the biggest policy mistake since the Arthur Burns Fed, triggering much more inflation down the road. As of 7:55am ET, futures on the US Nasdaq 100 and S&P 500 were down -0.1% after a solid rebound yesterday from Wednesday's 0DTE inspired selloff. The dollar dropped while oil was modestly higher, headed for a weekly advance as attacks in the Red Sea forced hundreds of ships to take longer routes.

In premarket trading, Nike tumbled 12% after the sportswear giant flagged that it’s looking for as much as $2 billion in cost savings and issued a weak forecast for the second half of the company’s fiscal year. The update prompted Cowen to downgrade its rating on the shares. A selloff also engulfed video-game companies, with double-digit losses at US-listed Chinese names NetEase Inc. and Bilibili Inc., after China stunned the sector with fresh restrictions. Here are some other notable movers: