Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York, August 8, 2022.
Andrew Kelly | Reuters
Stock futures were little changed on Sunday, as Wall Street awaits guidance on monetary policy from the Federal Reserve this week.
Futures tied to the S&P 500 hovered near the flatline. Dow Jones Industrial Average futures slipped 20 points, or 0.05%, while Nasdaq-100 futures ticked up 0.1%.
Inflation concerns have pressured stocks in recent days, with the S&P 500 set to enter Monday trading riding a two-week losing streak. The 30-stock Dow and Nasdaq are also coming off marginal losses. A hotter-than-expected February core and wholesale inflation reading frustrated equities and sparked anxiety that the central bank may be partial toward higher interest rates for longer before its policy meeting begins on Tuesday.
“Next week’s Fed meeting could determine the direction for the market, particularly if the Fed telegraphs that rates need to remain steady, even for just a bit longer,” LPL Financial chief global strategist Quincy Krosby wrote in a Friday note. “That could be what’s needed to allow this market to absorb gains and consolidate before the new earnings season begins.”
According to the CME FedWatch Tool, Fed funds futures are currently pricing in a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week. However, the expectation for a June cut has ticked down in recent days to about 55%.
On Wednesday and Thursday, investors will also examine quarterly results from chipmaker Micron Technology and shipping giant FedEx.
Source Agencies
