Market Update: Intel Gains on Investment Report; GM Slides After Truist Downgrade
Futures: Dow up 0.04%, S&P 500 up 0.10%, Nasdaq up 0.17%
September 23 (Reuters) – U.S. stock index futures were muted on Monday as investors awaited insights from policymakers and economic data to assess the outlook for interest rates, following the Federal Reserve’s recent easing cycle.
Last week’s significant monetary policy shift helped bolster Wall Street’s main indices, resulting in monthly gains that defied the typical September trend of weaker equities.
The S&P 500 is nearing an all-time high, while the blue-chip Dow closed at a record on Friday. However, with valuations above long-term averages, there is some caution regarding further investments.
At 7:19 a.m. ET, Dow E-minis rose 17 points (0.04%), S&P 500 E-minis increased by 6 points (0.10%), and Nasdaq 100 E-minis gained 34.75 points (0.17%).
Recent data showed that equity fund managers raised their net long positions in S&P 500 futures contracts for the week ending September 17.
A series of Fed officials are scheduled to speak this week, including Chair Jerome Powell on Thursday, as markets look for insights on monetary policy and the overall economic health, which analysts generally view as robust.
On Friday, Governor Christopher Waller indicated that upcoming inflation data might fall below the Fed’s 2% target. Conversely, Michelle Bowman, who supported a 25 basis point cut at the last meeting, noted that price pressures remain persistent.
Minneapolis President Neel Kashkari backed the Fed’s recent actions, suggesting that rates could be cut by another half a percentage point by year-end.
Traders are weighing a potential rate cut in November as a near toss-up, according to CME Group’s FedWatch tool, with slightly higher odds favoring a 25 basis point reduction.
Later today, remarks from Fed presidents Raphael Bostic and Austan Goolsbee are also expected.