Stock futures are little changed as investors await key Fed decision: Immediate update

Stock futures were little changed Sunday night as investors awaited the highly anticipated Federal Reserve policy meeting, when central bankers are expected to cut rates for the first time since 2020.

S&P 500 futures hovered just above the flatline, while futures are tied to the Dow Jones Industrial Average added 12 points, or less than 0.1%. Nasdaq 100 futures edged down by 0.1%.

The S&P 500 is less than 1% away from a July record high and could hit new highs this week. After a rough start to a historically weak September, the three major US indices ended last week’s trading session in the green, with S&P 500 and heavy technology Nasdaq Composite just closed the best week of 2024.

The central banker is set to meet on Tuesday and Wednesday and is widely expected to cut interest rates for the first time since starting a rate hike in March 2022. This week’s cut will be an important step, as many investors expect the decision to lower borrowing costs. for companies and increase overall earnings growth – increasing economic growth.

The overnight lending rate is currently at 5.25% to 5.5%. About 56% of traders see a 25-basis-point cut, while 44% expect a larger 50-basis-point cut, according to CME’s FedWatch tool.

Stocks typically post strong gains during cycles where early rate cuts can sustain economic expansion, said BMO Capital investment strategist Brian Belski.

“As long as nothing breaks in the economy, U.S. stocks remain firmly in a bull market, but with a year’s performance so strong that it’s down to this early level, future gains will be more muted than the historical norm, in our view,” he said in a note. Friday ahead.

Investors will also watch August retail sales data due on Tuesday and earnings from food companies General Mills and parent company Olive Garden Darden Restaurantalso FedEx and build a house Lennar.