US Stock Futures Dip as Market Eyes Fed Guidance

U.S. stock index futures experienced a slight decline in evening trading on Monday, as Wall Street steadied itself close to record highs, with attention turning to forthcoming signals from the Federal Reserve regarding interest rates.

The week began sluggishly for Wall Street, which partially recovered from losses incurred on Friday, yet remained in proximity to the record peaks reached the previous week following a significant rate cut by the Fed.

S&P 500 Futures decreased by 0.1% to 5,770.75 points, while Nasdaq 100 Futures fell by 0.2% to 20,050.50 points as of 19:16 ET (23:16 GMT). Dow Jones Futures also dipped 0.1% to 42,451.0 points.

### Fed Speeches and PCE Data in Focus

This week’s spotlight is on speeches from multiple Federal Reserve officials, particularly Chair Jerome Powell, which are expected to provide additional insights regarding the central bank’s intentions to further reduce interest rates.

Minneapolis Fed President Neel Kashkari indicated that he anticipates a reduction in the pace of future rate cuts following a strong start to the easing process, while Atlanta Fed President Raphael Bostic noted that the economy is approaching normalization more rapidly than anticipated, though he does not foresee a rapid series of rate cuts. Chicago Fed President Austan Goolsbee remarked that last week’s 50 basis point cut supports the case for a soft economic landing.

The Fed’s recent rate cut aligned with the higher end of market expectations, signaling the initiation of an easing cycle that analysts predict will lower rates by 125 basis points by the end of the year. Additionally, the PCE price index data, which is the Fed’s preferred measure of inflation, will be released on Friday and is expected to influence the Fed’s strategy for rate reductions, even though the current reading remains above the central bank’s 2% annual target.

### Wall Street’s Record Highs in Sight; Mixed PMI Data

On Monday, Wall Street indexes showed slight gains, with the S&P 500 and the Dow Jones Industrial Average maintaining their positions near recent highs. However, the NASDAQ Composite lagged as technology stocks showed lackluster performance amid an influx of investments into other economically sensitive sectors.

The S&P 500 climbed by 0.3% to 5,718.57 points, while the Nasdaq Composite rose by 0.1% to 17,973.60 points. The Dow increased by 0.2% to 42,124.65 points.

Purchasing Managers Index (PMI) data for September presented a mixed outlook for the U.S. economy. While services activity exceeded expectations, there was a notable decline in manufacturing activity over the month, with manufacturing PMI shrinking at its worst rate since July 2023.