US Stock Futures – Dow Jones and S&P 500 Futures Steady as Market Awaits Fed Decision

US Stock Futures – On Monday morning, US stock index futures were largely unchanged as investors braced for the upcoming Federal Reserve meeting, where a potential start to a rate-cutting cycle is anticipated. As of 05:50 ET (09:50 GMT), Dow Jones Futures edged up by 60 points, or 0.1%, S&P 500 Futures saw a slight gain of 3 points, or 0.1%, while Nasdaq 100 Futures slipped by 13 points, or 0.1%.

Market Sentiment Cautious Over Trump Incident

Market participants exhibited a degree of caution following reports of a second attempted assassination on Republican presidential candidate Donald Trump, though the former president was not harmed. This incident added a layer of uncertainty to the market atmosphere ahead of the Fed’s crucial meeting.

Federal Reserve Meeting: Expectations and Market Split

The Federal Reserve is scheduled to convene later this week, with widespread speculation that the central bank will begin reducing interest rates. According to CME Fedwatch, traders are currently pricing in a 50% probability of a 50 basis point cut and a 50% chance of a 25 basis point cut. This upcoming decision is expected to influence the Fed’s strategy in addressing concerns about a cooling economy and labor market, despite persistent inflationary pressures.

Lower rates are anticipated to create a more favorable environment for equities, potentially supporting stock prices in the months ahead.

Wall Street Indexes Near Record Highs

Despite sticky inflation data, major Wall Street indexes delivered strong performances last week. The S&P 500 surged by 4%, while the Dow Jones Industrial Average rose by 2.6%, bringing both indexes close to record highs. The NASDAQ Composite also saw a notable gain of nearly 6%, although it remains below earlier peaks.

Pfizer and Boeing: Corporate Sector Developments

In the corporate arena, Pfizer (NYSE: PFE) saw a 0.6% premarket rise following positive midstage trial results for its experimental drug aimed at combating weight loss in cancer patients. Conversely, Boeing (NYSE: BA) stock increased by 0.3% premarket after a 3% drop on Friday. The company continues to deal with a strike involving over 30,000 workers, with negotiations set to resume on Tuesday.

Crude Oil Prices Rise Ahead of Fed Meeting

Crude oil prices climbed on Monday as the market anticipated a Fed rate cut later in the week, which could support economic growth and fuel demand. By 05:55 ET, Brent crude gained 0.5% to $71.98 per barrel, while U.S. crude futures (WTI) were up 0.6% at $68.18 per barrel.

Despite this, ongoing concerns about demand and Chinese economic weakness, coupled with the resumption of Gulf of Mexico crude production after Hurricane Francine, have limited the potential for a significant price increase.

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