Stock futures ticked up slightly on Monday, fueled by enthusiasm from last week’s interest rate cut that drove the Dow Jones Industrial Average to a record closing high.
Futures for the 30-stock index rose by 27 points, or 0.06%, while S&P 500 futures gained 0.15% and Nasdaq 100 futures increased by 0.22%.
The market movements follow a successful week on Wall Street, driven by the Federal Reserve’s decision to cut interest rates by 50 basis points—the first reduction in four years. After some initial volatility post-announcement, stocks gained momentum, with the Dow closing Friday at a record high above 42,000. All three major indexes rose over 1% for the week, with the S&P 500 also reaching new peaks.
“I see this week’s rate cut as a signal that the Fed is ready to act swiftly if it needs to guard against potential labor market weakness,” said Ronald Temple, chief market strategist at Lazard, in a Friday note.
“While neither a 25 nor a 50 basis point cut will significantly alter the near-term economic outlook, the signal is nonetheless important, and markets reacted the following day by pushing the S&P 500 to a new all-time high,” he added.
On Monday, investors will focus on economic data related to the service and manufacturing sectors, as well as speeches from Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee, and Minneapolis Fed President Neel Kashkari, looking for insights into the central bank’s future actions.