US STOCKS-Wall Street set for higher open as rate cut, data awaited

Updates prices ahead of market open

By Lisa Pauline Mattackal and Purvi Agarwal

Dec 16 (Reuters) - U.S. stock index futures pointed to a higher open on Monday, as investors looked ahead to an anticipated Federal Reserve interest rate cut later in the week, as well as several key data releases that will help set the tone for policy next year.

The Fed's final rate decision of the year is due on Wednesday, with traders pricing in an over 97% chance of a 25 basis point rate reduction, as per CME's FedWatch.

However, the primary focus will be on policymakers' outlook for next year, with an updated "dot plot" of forecasts also to be released, as bets moderate on the pace of rate cuts amid strong economic growth and persistent inflation.

"The market's hungry for more cuts and the Fed's left with a task of juggling - is this doable without creating inflationary pressure?" said Andre Bakhos, managing member at Ingenium Analytics.

"The odds favor the enthusiasm," Bakhos said.

A heavy data docket also awaits investors over the week. S&P Global's December flash manufacturing and services PMIs are due at 9:45 a.m. ET on the day, with industrial production figures, retail sales, and personal consumption expenditure data also scheduled throughout the week.

At 8:40 a.m. ET, U.S. S&P 500 E-minis EScv1 were up 17.25 points, or 0.28%, Nasdaq 100 E-minis NQcv1 were up 108.25 points, or 0.5%, Dow E-minis 1YMcv1 were up 52 points, or 0.12%

The benchmark S&P 500 .SPX and the blue-chip Dow .DJI ended the previous week lower, while the tech-heavy Nasdaq .IXIC had clocked its fourth straight week of gains after breaching the 20,000 mark for the first time.

Still, stocks have had a bumper run in 2024 as gains in shares related to artificial intelligence, the start of the Federal Reserve's rate cutting cycle and expected pro-business policies from Donald Trump's incoming presidential administration have lifted equities.

The benchmark index .SPX has gained nearly 27%, while the Nasdaq Composite .IXIC is up over 32% year to date.

Shares of MicroStrategy MSTR.O rose 4.4% in premarket trading as the software company and bitcoin buyer was set to join the tech-heavy Nasdaq 100 index .NDX.

Palantir PLTR.O and Axon Enterprise AXON.O gained 0.2% and 1.8%, respectively, with the stocks also to be added to the reconstituted index. The changes will take effect on Dec. 23.

Super Micro Computer SMCI.O, among those set to be removed from the index, dropped 11.8%.

Crypotocurrency stocks rose as bitcoin BTC= briefly jumped above $106,000 after Trump suggested he plans to create a U.S. bitcoin strategic reserve similar to its strategic oil reserve.

Coinbase Global COIN.O rose 1.9% and bitcoin miner MARA Holdings MARA.O gained 3.1%.

Honeywell International HON.O gained 2.1% after the industrial conglomerate said it was exploring a separation of its aerospace business.

Shares of Michael Kors parent Capri Holdings CPRI.N were up 4.6% after J.P. Morgan hiked its price target on the stock to $19 from $15, citing a continued trajectory of "gradual improvement" at the company's brands.

(Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Maju Samuel)

((LisaPauline.Mattackal@thomsonreuters.com;))