Stock futures are little changed as investors await major Fed decision: Live updates – CNBC

Stock futures edged lower Sunday night as investors awaited the Federal Reserve's highly anticipated policy meeting, where the central bank is expected to cut interest rates for the first time since 2020.

S&P 500 Futures It fell below the flat line, Futures linked to the Dow Jones Industrial Average It fell 4 points, or less than 0.1 percent. Nasdaq 100 Futures It fell 0.1%.

The S&P 500 is less than 1% off its July high and could reach a new all-time high this week. After a tough start to a historically weak September, the three major U.S. stock indexes ended last week's trading session in the positive. S&P 500 Technology Focus Nasdaq Composite Index I just finished the best week of 2024.

The central bank meets on Tuesday and Wednesday and is widely expected to cut interest rates for the first time since it began hiking them in March 2022. A cut this week would be a crucial move, as many investors hope the decision will lower borrowing costs for companies, improving overall earnings growth and spurring economic growth.

Overnight lending rates are currently at 5.25% to 5.5%. About 56% of traders expect a 25 basis point cut, while 44% expect a larger cut of 50 basis points, according to the CME. FedWatch tool.

Stocks typically see strong gains in cycles where initial rate cuts help sustain economic expansion, said Brian Belski, chief investment strategist at BMO Capital.

“As long as nothing changes in the economy, we believe the bull market in U.S. stocks will remain robust, but future gains are likely to be slower than historical levels, given the strong performance of stocks over the past year prior to this first rate cut,” he wrote in a Friday note.

Investors will also be keeping an eye on August retail sales data and food company performance due to be released on Tuesday. General Mills Olive Garden's parent company Darden Restaurantas well FedEx Home Builders Renner.