U.S. stock futures fell by 0.2% after the S&P 500 hit an all-time high. Weakening consumer spending and a deteriorating job market suggest possible interest rate cuts by the Federal Reserve in September, which could positively impact stocks. Analysts predict a 100K increase in June nonfarm payrolls, with an increase in unemployment to 4.3%. Consumer spending dropped by 0.3% in May, indicating economic softening, however, lower inflation may lead the Fed to consider easing monetary policy sooner than previously anticipated.
The U.S. stock market is responding positively to weakening macroeconomic data, as it suggests potential interest rate cuts by the Federal Reserve, which usually benefits stocks.
Consumer spending has decreased by 0.3% in May and the job market is showing signs of cooling, with the unemployment rate expected to rise to 4.3%.
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