U.S. Stock Futures Little Changed: Investors Hold Their Breath for Fed Decision
Stock futures were relatively unchanged on Sunday night as investors awaited the Federal Reserve’s highly anticipated policy meeting. The Fed is widely expected to cut interest rates for the first time since 2020, marking a pivotal shift in monetary policy. Futures tied to the S&P 500 hovered just below the flatline, while Dow Jones Industrial Average futures rose by 78 points (0.2%). Nasdaq-100 futures edged lower by 0.1%.
S&P 500 Near Record High: Optimism Grows Ahead of Fed Meeting
The S&P 500 is less than 1% away from reaching its July record, and with the Fed’s decision looming, there’s potential for the index to notch a new all-time high this week. U.S. markets ended last week on a positive note, despite September traditionally being a weaker month for stocks. The S&P 500 and Nasdaq Composite closed their best week of 2024, buoyed by optimism over the Fed’s potential rate cut.
Fed Expected to Cut Rates: Easing Monetary Policy to Boost Growth
The Federal Reserve will meet on Tuesday and Wednesday, with markets widely expecting a cut in interest rates for the first time since the central bank started hiking them in March 2022. Investors hope that lower borrowing costs will stimulate corporate earnings and economic growth, creating a more favorable environment for the stock market. A rate cut could be a significant tailwind for equities, especially as concerns about an economic slowdown linger.
