Traders work on the trading floor of the New York Stock Exchange on February 29, 2024.
New York Stock Exchange
Stock futures were little changed on Monday morning as investors looked to push stocks back to record highs in light of the Federal Reserve signaling an imminent rate cut.
Futures tied to the S&P 500 fell 0.07%, while Nasdaq 100 futures edged lower. Dow Jones Industrial Average futures fell 24 points, or 0.06%.
Stocks have just had a strong week, highlighted by comments from Federal Reserve Chairman Jerome Powell that a rate cut is imminent. Wall Street has been anxiously awaiting a rate cut, especially in light of some worrisome economic data that triggered a sell-off in early August and concerns that rising borrowing costs for investors could hurt the U.S. economy.
But stocks have since rebounded and are now hovering near all-time highs. When the benchmark S&P 500 closed Friday, the broader market index was within 1% of its all-time high set in mid-July. The rebound has extended to the broader market, with the small-cap Russell 2000 index rising 3% after Powell’s comments.
David Russell, head of global market strategy at TradeStation, said, “(Powell’s comments) keep a tailwind for markets heading into the end of the year, making it harder to expect a retest of this month’s lows.”
To be sure, Powell did not indicate when or how much rates might be lowered. However, traders still unanimously predict that the Fed will cut interest rates at its September policy meeting, according to data from CME Group. Fed Watch Tool.
On the economic front, jobless claims will be released at 8:30 a.m. Thursday, followed by personal consumption expenditures data for July on Friday.
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