Dow Jones futures gain as traders eye delayed US data, Fed signals

• Dow Jones futures rise as traders await delayed economic data for clearer Fed policy signals.
• CME FedWatch Tool indicates pricing in a 44% chance of a 25-basis-point Fed rate cut in December.
• September Nonfarm Payrolls and corporate earnings are due this week.

Dow Jones futures rise 0.18% to trade above 47,300 during European hours ahead of the opening of the United States (US) regular session on Monday. Moreover, the S&P 500 futures and Nasdaq 100 added 0.57% and 0.90%, with trading near 6,800 and 25,300, respectively.

US index futures edged higher as traders prepare for a backlog of delayed economic data following the government's reopening, seeking clearer cues on Federal Reserve (Fed) policy. The highly anticipated September Nonfarm Payrolls report is scheduled for release on November 20, with markets also awaiting a revised timeline for other key indicators. However, US National Economic Council Director Kevin Hassett cautioned last week that some October data may "never materialize," as several agencies were unable to gather information during the shutdown.

However, market sentiment remains cautious amid prevailing uncertainty regarding the Fed policy outlook. Cautious remarks from Fed officials diminished the likelihood of an interest rate cut in December. The CME FedWatch Tool suggests that financial markets are now pricing in nearly a 44% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from 62% probability that markets priced a week ago.

Last week, the major averages moved higher initially but later reversed as worries over elevated AI valuations resurfaced. This week, investors will turn their attention to a fresh round of corporate earnings. AI chipmaker Nvidia reports on Wednesday, alongside other S&P 500 heavyweights including Home Depot, Target, Walmart, Palo Alto Networks, and Intuit.