Traders work on the floor of the New York Stock Exchange during morning trading on Sept. 23, 2024.
Michael M. Santiago | Getty Images
U.S. stock futures were little changed Monday after the S&P 500 and Dow Jones Industrial Average posted new record closes.
Futures tied to the 30-stock Dow slipped 36 points, or 0.08%. S&P 500 futures inched down 0.09%. Nasdaq 100 futures dipped 0.14%.
Earlier in the day, the S&P 500 rose 0.28% and the Dow added 0.15%, resulting in closing records for both indexes. The Nasdaq Composite ended the session up 0.14%.
The gains were modest but appeared to be a continuation of last week’s rally after the Federal Reserve cut interest rates by a half percentage point. The fed funds rate now sits at a range of 4.75% to 5.00%.
Rate-sensitive sectors such as utilities and financials have moved higher in recent weeks in anticipation of the Fed’s cuts. There are now four sectors in the S&P 500 outperforming the market in 2024, compared to just two sectors back in July, according to Paul Hickey, co-founder of Bespoke Investment Group.
“There’s been a lot moving underneath the surface. … You’ve seen the baton passed from these megacap stocks to the broader market,” Hickey said on CNBC’s “Closing Bell: Overtime” on Monday.
While traders have cheered the outsized rate reduction, the market will likely experience heightened volatility over the coming weeks, according to Quincy Krosby, chief global strategist for LPL Financial.
“Given how valuations have edged higher on the back of the market’s post Fed momentum, the market will be highly sensitive to any indication that the economy is softening at a faster pace,” she said.
Traders will mull over fresh economic data on Tuesday, with the Conference Board’s consumer confidence reading for September due. The Richmond Fed manufacturing index for this month will also be out in the morning.
AutoZone and KB Home are also expected to post quarterly results.