Traders on the New York Stock Exchange floor on Sept. 9, 2024.
Spencer Platt | Getty Images News | Getty Images
Dow Jones Industrial Average futures are near flat Sunday night after excitement over last week’s interest rate cut propelled the blue-chip index to a record closing level.
Futures tied to the 30-stock index lost just 12 points, sitting near flat. S&P 500 futures and Nasdaq 100 futures are also both little changed.
The moves come after a winning week on Wall Street that centered around the Federal Reserve’s decision to lower interest rates by 50 basis points, its first cut in four years. Despite some choppiness following the initial announcement, stocks rallied in the days following.
The Dow ended Friday at an all-time high close, which was notably above 42,000. All three of the major indexes added more than 1% for the week, during which the S&P 500 also reached new records.
“I view this week’s rate cut as being a signal that the Fed is willing to act quickly if it needs an insurance policy against excessive labor market weakening,” said Ronald Temple, Lazard’s chief market strategist, in a Friday note.
“The reality is that neither 25 nor 50 bps of rate cuts will materially change the near-term economic trajectory,” he said. “But the signal is important nonetheless, and markets responded the following day taking the S&P 500 Index to a new all-time high.”
Investors will be watching Monday for economic data on the service and manufacturing sectors. They’ll also be following speeches from Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari for insights into what the central bank will do next.