Monday morning saw a rise in stock futures as Wall Street expects guidance on monetary policy from the Federal Reserve this week.
Futures linked to the S&P 500 rose 0.27%. Nasdaq futures added 0.47%, while Dow Jones Industrial Average futures buzzed around the flatline.
Concerns over inflation have put pressure on markets recently; the S&P 500 is expected to start Monday trading on a two-week losing streak. Both the 30-stock Nasdaq and the Dow are recovering from slight losses. Equities were rattled by a hotter-than-expected core and wholesale inflation data for February, which also raised fears that the central bank would be leaning toward higher interest rates for a longer period of time before its policy meeting 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.”
Fed funds futures are currently putting in a 99% chance that the Fed will maintain benchmark interest rates this week, according to the CME FedWatch Tool. But in recent days, the likelihood of a June cut has decreased slightly to roughly 55%.
Investors will also review the quarterly results of FedEx, the shipping giant, and Micron Technology, a chipmaker, on Wednesday and Thursday.