Traders work on the floor of the New York Stock Exchange during morning trading on February 29, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures were little changed after a strong start to the week Monday night as investors braced for large-cap earnings, the Federal Reserve’s latest interest rate decision and employment data. The stock is also on pace to break a six-month winning streak.
Dow Jones Industrial Average futures fell 18 points, or 0.05%. S&P 500 futures fell 0.05% and Nasdaq 100 futures rose 0.03%.
Wall Street is coming off a strong session. Tesla shares soared after the electric car maker passed a key milestone in the rollout of advanced driver-assistance technology in China, pushing the stock higher. Apple also rose on the back of a bullish hike in its stock price. The S&P 500 rose 0.32% and the Nasdaq Composite rose 0.35%. The Dow Jones Industrial Average rose 146.43 points, or 0.38%.
Still, stocks are heading for their first down month since October as expectations for interest rate cuts have fallen significantly from the start of the year. The 30-stock index is on pace to decline more than 3% in April. The S&P 500 and Nasdaq Composite are each headed for declines of more than 2%.
Markets are pricing in a rate cut of just a quarter of a point in 2024, which is lower than the 6-7 percentage point cut expected in the new year, with sustained inflation and a resilient economy pushing the Fed This is because there is a growing possibility that interest rates will continue to rise for a longer period of time.
“If you look at the size and scope and scale of the rally from the October lows, and then add ultimately the stickiness of inflation on top of that… it’s going to dampen market momentum for some time.” Dan Greenhouse, chief strategist at Solus Alternative Asset Management, said on CNBC’s “Closing Bell.”
The coming week will be a busy one for Fed policymakers, who are scheduled to hold a two-day policy meeting on Tuesday. The central bank is largely expected to keep interest rates on hold, but traders fear Fed Chairman Jerome Powell’s post-meeting comments will become more hawkish after a spate of recent reports of high inflation levels. are doing.
It’s expected to be the busiest week for corporate earnings, with Amazon and Apple reporting their quarterly results on Tuesday and Thursday, respectively. Also on Tuesday, investors from McDonald’s, Coca-Cola, Restaurant Brands, Eli Lilly and PayPal will announce results before trading begins. Advanced Micro Devices, Pinterest, Supermicro, and Starbucks are expected to announce their financial results after the market close.
Employment statistics for April are expected to be released this weekend.
