Stock Market Today: Dow futures level off after Fed rate cut rally
How are stock-index futures trading:
S&P 500 futures increased 0.09%
Dow Jones Industrial Average futures increased 0.02%
Nasdaq 100 futures increased 0.16%
On Friday, the Dow Jones Industrial Average increased 38.17 points, or 0.09%, 42,063, as the S&P 500 fell 11.09 points, or 0.19%, to 5,706, and the Nasdaq 100 fell 48.34 points, or 0.24%, to 19,791.49.
Markets were subdued on Monday morning in the wake of last week’s rally that was sparked by the U.S. Federal Reserve’s decision to lower its key overnight borrowing rate by 50 basis points on Sept. 18.
“[The] combination of the Fed easing into a soft landing has historically proved to be a very favourable one for US equities, and last week was no different,” Deutsche Bank’s analysts said.
Last week’s rally was fueled by a strong performance from the Magnificent Seven that helped drive the S&P 500 up to new record highs on Thursday, in what saw the index break a record for the 39th time this year.
In the week ahead, it is expected investors will now be closely watching out for explanations of the Fed’s decision in a series of talks set to be given by various members of the the U.S. central bank’s rates committee.
Publication of the final reading of the U.S. Q2 real GDP data on Thursday and the most recent edition of the core PCE inflation report on Friday could also offer a better indication of what course the Fed might take in cutting rates going forward.