US stock futures remained unchanged on Sunday evening as investors geared up for a critical Federal Reserve meeting scheduled for later this week. Futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 settled around the neutral mark.
This steadiness in futures follows a week in which major stock indices displayed robust performance. Notably, the Nasdaq Composite achieved a new record, climbing 2% and marking its second consecutive week of gains. Meanwhile, the S&P 500 rose by 1.6%, reflecting its strongest weekly performance since early August. The Dow also managed to break a two-week losing streak, although its gains were modest.
Market analysts are increasingly focusing on labor market indicators along with persistent price increases, which have heightened expectations that the Federal Reserve is likely to announce an interest rate cut during its policy meeting on Wednesday. Current estimates indicate a 96% probability of a quarter-point reduction, according to Fed funds futures. A rate cut could serve as an additional boost for equities, particularly as investor enthusiasm around artificial intelligence (AI) continues to propel market sentiment, even amid concerns regarding a potential AI bubble. Traders are also keenly observing whether Stephen Miran will be officially sworn in as a Fed governor in time to participate in this week’s Federal Open Market Committee vote.
Earnings season is nearing its conclusion, yet several notable companies are poised to take the stage. FedEx is set to release its results, which investors view as a critical indicator of global trade dynamics and the overall health of the US economy. Additionally, Cracker Barrel is preparing to announce its performance amidst recent discussions surrounding a branding revamp.
Market watchers will be closely monitoring developments as they unfold in the coming days.
