Dow Futures Edge Lower As December Rate Cut Odds Decline: GOOGL, TSLA, DIS, XPEV Among Stocks To Watch

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While Dow Jones futures were down by 0.06% at the time of writing, the S&P 500 futures rose 0.26%.

  • According to data from the CME FedWatch tool, the probability of a 25-basis-point rate cut in December is down to 44.6% now, from 62.4% a week ago.
  • The Schwab Center for Financial Research stated in its latest note that the more likely rate scenario is a pause in December, followed by one or two cuts in the first half of 2026.
  • Asian markets ended Monday’s trading session on a mixed note, with the Hang Seng index declining the most at 0.8%.

U.S. stocks appear set for a negative opening on Monday after expectations of an interest rate cut at the Federal Open Market Committee’s (FOMC) upcoming December meeting cratered.

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According to data from the CME FedWatch tool, the probability of a 25-basis-point rate cut in December has decreased to 44.6%, down from 62.4% a week ago and 93.7% a month ago.

“The likelihood of a December rate continues to decline,” said Collin Martin, head of fixed income research and strategy, Schwab Center for Financial Research. The firm said in its latest note that the more likely rate scenario is a pause in December and one or two cuts in the first half of 2026.

Futures Mixed

While Dow Jones futures were down by 0.06% at the time of writing, the S&P 500 futures rose 0.26%, while the tech-heavy Nasdaq 100’s futures gained 0.5%. Futures of the Russell 2000 index were up by 0.06%.

Meanwhile, the SPDR S&P 500 ETF (SPY) was up by 0.26% at the time of writing, Invesco QQQ Trust (QQQ) gained 0.45% on Friday morning, and SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 0.04%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

Asian Markets Mixed

Asian markets ended Monday’s trading session on a mixed note, with the Hang Seng index declining the most at 0.8%, followed by the Shanghai Composite at 0.46%, and the Nikkei 225 at 0.23%.

The KOSPI gained 1.9%, while the TWSE Capitalization Weighted Stock index rose 0.18%.

Stocks To Watch

  • Alphabet Inc. (GOOG) (GOOGL): Alphabet’s Class A shares were up nearly 5% pre-market after Berkshire Hathaway Inc. (BRK-A) (BRK-B) disclosed a $4.34 billion investment in the company in the third quarter (Q3), according to Berkshire’s 13F filing with the U.S. Securities and Exchange Commission (SEC).
  • Tesla Inc. (TSLA): According to a report by The Wall Street Journal, Tesla is now requiring its suppliers to exclude components from China for the manufacturing of its cars in the U.S., amid ongoing geopolitical tensions between the two countries. Tesla shares were up more than 1% pre-market.
  • Walt Disney Co. (DIS): Disney entered into a deal with Google to return ESPN, ABC, and other networks to YouTube TV after a 15-day impasse. Disney shares edged up by 0.05% pre-market.
  • XPeng Inc. (XPEV): XPeng’s American Depository Receipts (ADR) were down more than 3% pre-market after the company reported a net loss of 380 million yuan ($50 million) during the third quarter (Q3). Its loss per ADS stood at $0.02, in line with estimates, according to Stocktwits data.
  • Imperial Petroleum Inc. (IMPP), American Resources Corp. (AREC), and NRX Pharmaceuticals Inc. (NRXP) are among the companies scheduled to report their latest quarterly earnings on Monday.

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