Stock futures remained steady Sunday evening as investors eye a potential return to record-high levels, buoyed by the Federal Reserve’s signal that interest rate cuts are on the horizon.
Futures linked to the S&P 500 dipped slightly by 0.1%, while Nasdaq 100 futures mirrored the trend with a 0.1% decline.
Meanwhile, Dow Jones Industrial Average futures edged down by 16 points, or 0.04%.
The market’s resilience was on full display last week, driven by Fed Chair Jerome Powell’s remarks suggesting rate cuts are imminent.
Wall Street has been eagerly awaiting such a move, especially after early August’s unsettling economic data triggered a brief sell-off and stoked fears that elevated borrowing costs might harm the U.S. economy.
However, stocks have since rebounded, teetering near historic highs.
The S&P 500’s close on Friday left it less than 1% shy of its mid-July peak.
This revival has extended to the broader market, with the small-cap Russell 2000 climbing 3% after Powell’s comments.
David Russell, global head of market strategy at TradeStation, noted that Powell’s remarks “keep a tailwind at the market’s back into year-end, making it harder to expect a retest of this month’s lows.”
Still, Powell did not indicate when, or by how much, interest rates might be lowered.
However, traders are unanimous in forecasting a rate cut at the Fed’s September meeting, according to the CME Group’s FedWatch Tool.
On the economic front, initial jobless claims will be released on Thursday at 8:30 a.m., followed by the July personal consumption expenditures report on Friday.
The upcoming data will be closely watched by the business community as it may further influence market movements.
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