Traders work on the New York Stock Exchange trading floor during early trading on February 29, 2024 in New York City.
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U.S. stock futures were little changed late Monday after a strong start to the week as investors braced for large-cap gains, the Federal Reserve’s latest interest rate decision and the jobs report. Stocks were also on track to snap a six-month winning streak.
Dow Jones Industrial Average futures fell 12 points, or 0.03%. S&P 500 futures fell 0.04%, while Nasdaq 100 futures rose 0.02%.
Wall Street’s gains came after Tesla shares rose as the electric car maker hit a major milestone in rolling out advanced driver-assistance technology in China, boosting stocks. Apple shares also rose on the bullish upgrade. The S&P 500 rose 0.32% and the Nasdaq rose 0.35%. The Dow Jones Industrial Average rose 146.43 points, or 0.38%.
Even so, the stock market is still set for its first losing month since October as interest rate cut expectations have dropped sharply from the beginning of the year. The 30-stock index is expected to fall more than 3% in April. The S&P 500 and Nasdaq will each fall by more than 2%.
Markets expect only a quarter-percentage point rate cut in 2024, down from the six to seven percentage points expected in the new year, as persistent inflation and a strong economy increase the Fed’s chances of keeping interest rates higher for longer. possibility.
“When you look at the size, scope and magnitude of the rebound from the October lows and then factor in the ultimate stickiness of inflation, I wouldn’t be surprised to see some,” said Dan Greenhow, chief strategist at Solus Alternative Asset Management. “The market has been subdued for a period of time,” Dan Greenhaus said on CNBC’s “Closing Bell.” “
It’s going to be a busy week ahead, with Federal Reserve policymakers convening a two-day policy meeting on Tuesday. The Fed is widely expected to keep interest rates steady, but traders are worried that Fed Chairman Powell’s post-meeting remarks will become more hawkish after a series of recent hot inflation reports.
The busiest week for corporate earnings continues, with Amazon and Apple reporting quarterly results on Tuesday and Thursday respectively. Elsewhere on Tuesday, investors will report results from McDonald’s, Coca-Cola, Restaurant Brands, Eli Lilly and Company and PayPal before the market opens. Advanced Micro Devices, Pinterest, Super Micro and Starbucks are expected to report results after the close.
The April jobs report is also expected this weekend.
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