Traders work on the floor of the New York Stock Exchange on Feb. 29th, 2024.
NYSE
Stock futures were little changed on Sunday as investors look to push equities back to record-high levels now that the Federal Reserve indicated that rate cuts are forthcoming.
Futures tied to the S&P 500 slipped 0.1%, while Nasdaq 100 futures lost 0.1%. Dow Jones Industrial Average futures ticked down 16 points, or 0.04%.
Stocks are coming off of a strong week that was highlighted by comments from Fed Chair Jerome Powell that interest rates cuts are imminent. Wall Street has been anxiously awaiting a rate cut, especially in light of some worrying economic data that sparked a sell-off at the beginning of August and worried investors that elevated borrowing costs could damage the U.S. economy.
But equities have since rebounded and are now hovering near all-time highs. The benchmark S&P 500’s close on Friday put the broad market index less than 1% away from its record high set in mid July. The rebound has broadened out to the wider market, with the small cap Russell 2000 adding 3% following Powell’s comments.
“[Powell’s comments] keeps a tailwind at the market’s back into year-end, making it harder to expect a retest of this month’s lows,” said David Russell, global head of market strategy at TradeStation.
To be sure, Powell did not indicate when, or by how much, interest rates would be potentially lowered. Traders remain unanimous in their forecast for a rate cut at the Fed’s September policy meeting, however, per the CME Group’s FedWatch Tool.
On the economic front, initial jobless claims are due out on Thursday at 8:30 a.m., followed by the July personal consumption expenditures reading on Friday.