A trader works at his post on the floor of the New York Stock Exchange in New York City on September 11, 2024. Brendan McDermid | Reuters
Stock futures remained mostly unchanged Sunday night as investors await the Federal Reserve’s highly anticipated policy meeting. The central bank is expected to cut interest rates for the first time since 2020. S&P 500 futures hovered just above flat, Dow Jones futures added 12 points (less than 0.1%), and Nasdaq 100 futures edged lower by 0.1%.
The S&P 500 is nearing its July record, potentially hitting a new all-time high this week. After a rocky start to September, historically a weak month, the three major U.S. indices ended last week positively. The S&P 500 and tech-heavy Nasdaq Composite had their best week of 2024.
Central bankers will meet on Tuesday and Wednesday and are widely expected to enact the first interest rate cut since they began raising rates in March 2022. Such a move could lower borrowing costs for companies, potentially boosting earnings and economic growth. The overnight lending rate stands between 5.25% and 5.5%, with 56% of traders predicting a 25 basis point cut and 44% anticipating a 50 basis point cut, according to the CME FedWatch tool.
Historically, stocks have seen strong gains during cycles where initial rate cuts sustain economic expansion, noted BMO Capital chief investment strategist Brian Belski. However, he cautioned that, given the strong performance of U.S. stocks over the past year, future gains may be more modest compared to historical averages.
Investors will also focus on August retail sales data due Tuesday, as well as earnings reports from General Mills, Olive Garden parent Darden Restaurants, FedEx, and homebuilder Lennar.
Original Story https://www.cnbc.com/2024/09/15/stock-futures-are-little-changed-as-investors-await-major-fed-decision-live-updates.html
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