!Traders work on the floor of the NYSE in New York
Futures-options traders work on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S., November 26, 2025. REUTERS/Brendan McDermid * Summary
* Companies
* Futures: Dow up 0.08%, S&P 500 unchanged, Nasdaq down 0.07%
* Hormel Foods rises after annual profit forecast above estimates
* Salesforce climbs as FY26 outlook gets boost
Dec 4 (Reuters) - U.S. stock futures were little changed on Thursday, as investors took a breather after growing prospects of a Federal Reserve rate cut propelled Wall Street to fresh highs in the previous session and pulled back ahead of a new round of economic data.
U.S. stocks notched their seventh gain in eight sessions on Wednesday, with the S&P 500 (.SPX), opens new tab and Dow (.DJI), opens new tab closing at more than three-week high as a soft ADP jobs print and an ISM survey pointing to cooling inflation reinforced bets on a Fed rate cut as soon as next week.
Fresh reads on the labor market are due on Thursday, with weekly jobless claims and the Challenger, Gray & Christmas November layoff report scheduled for release. A delayed factory orders report is also expected later in the day.
The Russell 2000 index (.RUT), opens new tab, which tracks small-caps that tend to thrive in a lower interest-rate environment, currently outperforms the benchmark S&P 500 (.SPX), opens new tab on a quarterly basis. Futures (.RTYcv1), opens new tab tracking the index eased 0.17% on the day.
Brokerages Jefferies and BofA Securities have forecast strong earnings growth for smaller companies next year.
"Investors are leaning into the idea that easier policy is coming, which is fueling appetite for risk and lifting everything from blue chips to small caps," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Fed funds futures point to an 87% chance that the central bank will cut rates by 25 basis points this month, up from around 60% last month, according to the CME Group's FedWatch Tool.
Investor attention is largely centered on Friday's September Personal Consumption Expenditures report, the Fed's preferred inflation gauge.
It will be the first PCE report since the recent U.S. government shutdown left markets and policymakers with little insight into the U.S. economy.
At 6:45 a.m. ET, Dow E-minis were up 37 points, or 0.08%, S&P 500 E-minis were down 0.25 points and Nasdaq 100 E-minis were down 17.5 points, or 0.07%.
Traders were also watching developments around U.S. President Donald Trump's selection of the next Federal Reserve chair, in a year of heightened concern over potential political interference in monetary policy.
A report said bond investors have expressed concerns to the U.S. Treasury that Kevin Hassett, a leading contender for the role, might pursue aggressive rate cuts to align monetary policy more closely with President Donald Trump's preferences.
In premarket trading, Snowflake <SNOW.N, opens new tab> lost 9.2% after the cloud data analytics company's fourth-quarter product revenue forecast fell short of lofty investor expectations for stronger growth.
Salesforce <CRM.N, opens new tab> gained 2% after the software maker raised its fiscal 2026 revenue and adjusted profit forecasts, anticipating growth in its artificial intelligence agent platform due to strong enterprise demand.
PayPal (PYPL.O), opens new tab lost 1% after brokerage JP Morgan lowered its rating on the fintech company to "neutral" from "overweight".
Hormel Foods(HRL.N), opens new tab gained 4% after the Skippy peanut butter maker forecast annual profit above estimates.
Earnings reports from companies including Dollar General (DG.N), opens new tab and Kroger (KR.N), opens new tab are expected before markets open and could offer more insight into the economic health of the American consumer.
Reporting by Johann M Cherian and Pranav Kashyap in Bengaluru; Editing by Tasim Zahid
Morning Bid: Odd jobs and bonds
Horizon Aircraft taps F1 supplier Motion Applied for flying taxi motor system