U.S. stock futures were flat on Monday after a positive week on Wall Street, as investors awaited Federal Reserve speeches and a key inflation figure for clues on the chances of another big rate cut.
Futures for the Dow Jones Industrial Average (YM=F) were little changed, hovering above Friday’s record closing high for the flagship index. Futures for the S&P 500 (ES=F) were up about 0.1%, while those for the tech-heavy Nasdaq 100 (NQ=F) were up 0.2%.
The market is gripped by concerns about the health of the U.S. economy, which persist after the Fed’s bold decision to cut interest rates last week. The big question now is whether the upcoming data releases this week will confirm Fed Chairman Jerome Powell’s assertion that conditions remain strong.
Learn more: What the Fed’s Rate Cut Means for Bank Accounts, CDs, Loans, and Credit Cards
Much will depend on Friday’s reading of the PCE index (the Fed’s preferred gauge of inflation) and Thursday’s release of second-quarter GDP. Experts believe that it is the slowdown in inflation, not the increased risk of recession, that will give policymakers the green light for another 0.5% cut this year.
In the meantime, investors are hoping to get more information on monetary policy from speeches by several Fed officials, starting with Austan Goolsbee and Raphael Bostic on Monday. Given the lack of unanimity in the latest decision, statements from Powell and dissenting Fed Governor Michelle Bowman later in the week are likely to be closely watched.
In corporate trading, Intel (INTC) shares soared after Apollo Global Management reportedly offered to invest billions of dollars in the struggling chipmaker, a vote of confidence in its turnaround strategy. Intel shares soared late last week on a report that Qualcomm (QCOM) was considering a buyout offer.
