FX.co ★ US Futures Hold Gains

US equity futures edged higher, extending the gains of the past two sessions and testing record levels as investors continued to assess the outlook for AI-related capital expenditures ahead of a slate of key economic releases. Futures tied to all three major indices traded just above the flatline, with Dow futures at record highs.

December retail sales, due shortly, are expected to show that US consumer spending remained relatively resilient. Later in the week, delayed jobs and CPI data will provide fresh clarity on both sides of the Federal Reserve’s dual mandate—employment and price stability. Markets have been pricing in two rate cuts for this year since January, keeping monetary policy expectations relatively stable.

Within equities, the focus remains on AI investment and profitability, a theme that has been central to the US market’s outperformance in recent years. Alphabet futures edged lower even as the company saw strong investor demand for its debt at the outset of an aggressive bond issuance program. By contrast, Coca-Cola shares fell more than 3% after the company missed fourth-quarter revenue estimates.