US Stock Futures Rise as Rate Cut Hopes Grow: Nebius Group Surges 8.72%, AngloGold Ashanti Drops 6.75%

US stock futures are pointing higher ahead of the bell, with investors balancing expectations for Federal Reserve rate cuts and uncertainty around key inflation data. Top movers include Nebius Group (NBIS) up 8.72%, AST SpaceMobile (ASTS) up 6.88%, and Kenvue (KVUE) up 4.73%. Losers include AngloGold Ashanti (AU) down 6.75%, Amer Sports (AS) down 6.05%, and XPeng (XPEV) down 5.29%. Investor focus will remain on macroeconomic data and policy developments shaping next week.

US stock futures are pointing higher ahead of the bell, with investors balancing expectations for Federal Reserve rate cuts and uncertainty around key inflation data. Top movers include Nebius Group (NBIS) up 8.72%, AST SpaceMobile (ASTS) up 6.88%, and Kenvue (KVUE) up 4.73%. Losers include AngloGold Ashanti (AU) down 6.75%, Amer Sports (AS) down 6.05%, and XPeng (XPEV) down 5.29%. Investor focus will remain on macroeconomic data and policy developments shaping next week.

With three weeks until the U.S. central bank's next policy meeting, the influential New York Federal Reserve President John Williams signaled he would be comfortable with cutting interest rates again. Williams, in an interview with the New York Times, emphasized his focus on labor market risks and downplayed the impact of President Trump's trade tariffs on inflation Fed's Williams sees rate cuts ahead, Barr calls for caution^[1]. However, other Fed policymakers, such as Fed Governor Michael Barr, have expressed concerns about rising inflation, despite acknowledging labor market vulnerabilities Fed’s Barr urges caution on rate cuts amid inflation concerns^[2].

Barr, in his first speech on monetary policy since June, called for a cautious approach to further interest rate cuts. He emphasized the risks of inflation, particularly those related to tariffs, and acknowledged vulnerabilities in the labor market. The Fed governor forecasts that core Personal Consumption Expenditures Price Index will rise above 3% by year-end, and headline inflation is not expected to reach the 2% target until the end of 2027. This would mark the longest stretch of PCE inflation above 2% since a seven-year period ending in 1993 Fed’s Barr urges caution on rate cuts amid inflation concerns^[2].

Williams and Barr's differing views illustrate the coming debate at the Fed's October 28-29 policy meeting. While Williams endorses a rate cut path, Barr's cautious stance reflects the central bank's challenging position with no risk-free path forward on monetary policy. Financial markets also reflect this expectation, with bets in interest-rate futures now pricing about a 95% chance that the Fed will lower its policy rate at the October meeting Fed's Williams sees rate cuts ahead, Barr calls for caution^[1].

Investors will closely watch the Fed's policy decisions and the upcoming inflation data to gauge the central bank's direction. The Fed's ability to balance the risks of inflation and a softening labor market will be crucial in shaping the economic outlook.