U.S. stock index futures saw minimal movement in late-night trading on Sunday, indicating a potential slowdown in the record-breaking rally as investors await further guidance on monetary policy and updates on the Presidential Election.
S&P 500 Futures dipped 0.1% to 5,141.75 points, while Nasdaq 100 Futures stabilized at 18,340.50 points by 18:53 ET (23:53 GMT). Dow Jones Futures also declined 0.1% to 39,098.0 points.
Last Friday, Wall Street indexes surged to all-time highs, buoyed by an AI-driven surge in tech stocks and expectations of earlier interest rate cuts by the Federal Reserve due to softening consumer sentiment and manufacturing activity. However, the momentum seems to be tapering off, particularly with stocks at record levels and several key economic indicators slated for release this week.
The S&P 500 closed at a record high of 5,137.08 points, up 0.8%, while the NASDAQ Composite reached a new peak of 16,274.94 points, climbing 1.1%. The Dow Jones Industrial Average also advanced 0.2% to 39,087.38 points, remaining within striking distance of recent highs.
Powell testimony, nonfarm payrolls awaited
This week, all eyes are on Federal Reserve Chair Jerome Powell’s testimony before a House Committee on Wednesday and a Senate panel on Thursday.
Powell is anticipated to reaffirm the Fed’s cautious approach to maintaining interest rates amid persistent inflation concerns, echoing sentiments expressed by several Fed officials in recent weeks. Nonetheless, market attention will be keenly focused on any indications regarding the timing of potential interest rate cuts this year, with speculation centered around a possible cut in June.
Following Powell’s testimony, the release of nonfarm payrolls data for February on Friday will provide further insights into the labor market’s condition, a crucial factor influencing the Fed’s interest rate decisions.
Super Tuesday in focus as Presidential race heats up
Super Tuesday- which will see fifteen U.S. states will hold votes on the Presidential Primaries, falls on March 5 this week.
The Presidential primaries are widely expected to set up a rematch between incumbent President Joe Biden and his predecessor Donald Trump.
Still, ongoing criminal proceedings against Trump and growing ire over Biden’s response to the Israel-Hamas war are expected to somewhat complicate the 2024 elections.
Among other points of focus this week, a response from Macy’s Inc (NYSE:M) will be awaited after the department store chain received an increased $6.6 billion takeover offer from an investor group.