CPI preview to be released later

Analysts said that after the release of the employment report, inflation data will be crucial for investors.

While the Federal Reserve may focus on the labor market data released in today's employment report, the other part of the Fed's dual mandate—inflation—is equally important.

The U.S. government will release the delayed November Consumer Price Index report on Thursday, providing investors with the latest inflation information.

While the employment report may provide evidence that the Fed should cut interest rates next year, it may need to see inflation remain stable before doing so.

Brett Kenwell, U.S. investment analyst at eToro, said in an email: "As the labor market continues to cool, the Fed's stance should lean slightly dovish as it shifts its focus to 2026. If this week's inflation data shows prices are under control, the committee may become more confident in this view. If that's the case, long positions may gain an advantage early in the year."