Futures retreat from post-election gains as focus shifts to economic data
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Home Depot gains after forecasting smaller drop in annual same-store sales
Shopify's US-listed shares climb after quarterly revenue beat
Futures down: Dow 0.15%, S&P 500 0.13%, Nasdaq 0.08%
Updated at 07:10 a.m. ET/1210 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Nov 12 (Reuters) -U.S. stock index futures edged lower on Tuesday after Wall Street's rally over the past few days following election results as traders awaited key inflation data later in the week for more signals on the country's economic and monetary policy outlook.
The three major indexes closed at record highs in the previous session as investors broadly expect President-elect Donald Trump's proposed tax cuts and expectations of easier regulatory policies to help equities.
Some of the stocks expected to perform well under Trump's presidency gave back gains. EV maker Tesla TSLA.O, which has soared nearly 40% since Nov. 5, fell 1% in premarket trading.
Futures tracking the small-cap Russell 2000 RTYcv1 fell 0.6% after the index closed at a three-year high on Monday. Trump Media & Technology Group DJT.O lost 4.7%.
Some crypto stocks eased after soaring in the past few sessions, even as bitcoin BTC= neared the $90,000 mark. Bitcoin miners MARA Holdings MARA.O and Riot Platforms RIOT.O fell 1.4% and 2.5%, respectively.
Focus will now be on consumer price inflation data, due Wednesday, the first of several batches of data this week that will provide direction to the U.S. Federal Reserve's policy path.
Markets have already dialed back expectations for interest rate reductions over the next year, given strong economic data and the possible inflationary impact of some of Trump's policies.
Traders are still pricing in a strong chance - nearly 69% - of a 25 basis point interest rate cut at the Fed's December meeting, according to CME FedWatch.
"We currently expect the Fed to enact another quarter-point rate reduction in December, this view is subject to decent readings on inflation between now and Dec. 18," said John Velis, Americas macro strategist at BNY.
"December's meeting will be the last meeting before the new administration assumes office, after which economic policy could radically alter the inflation and growth landscape, setting up a new set of calculations for the FOMC."
Fed officials Christopher Waller, Thomas Barkin, Neel Kashkari and Patrick Harker are expected to speak later in the day.
Dow E-minis 1YMcv1 were down 67 points, or 0.15%, S&P 500 E-minis EScv1 were down 7.75 points, or 0.13%, and Nasdaq 100 E-minis NQcv1 were down 17.25 points, or 0.08%.
Megacap technology stocks lost ground, with Nvidia NVDA.O down 0.3%, Alphabet GOOGL.O losing 0.1% and Meta Platforms META.O falling 0.4%, as Treasury yields moved higher across the board. Most megacaps closed lower on Monday.
Investors were also eyeing the possibility of a "Red Sweep" with one data provider projecting the Republican Party had won a majority in the U.S. House of Representatives, which would signal that Republicans would hold a majority in both chambers of Congress.
Home Depot HD.N was up 1% after the home improvement retailer forecast a smaller drop in annual same-store sales.
Grab Holdings GRAB.O jumped 10.1% after the Southeast Asian tech firm raised its forecast for fiscal 2024 revenue.
Shopify's U.S.-listed shares climbed 14% after the Canadian tech firm beat analysts' estimates for third-quarter revenue.
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Shounak Dasgupta
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