Traders work on the floor of the New York Stock Exchange on February 29, 2024.
New York Stock Exchange
Stock futures were little changed on Sunday as investors tried to push stocks back to record highs after the Federal Reserve signaled it would cut interest rates.
S&P 500 futures fell 0.1%, Nasdaq 100 futures dropped 0.1%, and Dow Jones Industrial Average futures fell 16 points, or 0.04%.
Stocks are coming off a strong week highlighted by Federal Reserve Chairman Jerome Powell’s comments that an interest rate cut is imminent. Wall Street has been anxiously awaiting a cut in interest rates, especially after some worrying economic data sparked a sell-off in early August and investors worried that rising borrowing costs could hurt the U.S. economy.
But stocks have since rebounded and are now trading near all-time highs. The S&P 500 closed Friday less than 1% below its all-time high hit in mid-July. The rebound was widespread across the market, with the Russell 2000 index of small-cap stocks up 3% after Powell’s comments.
“[Powell’s comments] “With the market continuing to enjoy tailwinds heading into the end of the year, a retest of this month’s lows is less likely,” said David Russell, head of global markets strategy at TradeStation.
Indeed, Powell did not indicate when or how much interest rates might be cut, but traders are expecting a cut at the Fed’s September policy meeting, according to a CME Group survey. FedWatchTools.
On the economic front, initial jobless claims will be released at 8:30 a.m. on Thursday, followed by personal consumption expenditures for July on Friday.
