Stock futures were pointing to further gains on Monday, with investors still confident that the Federal Reserve will cut interest rates on Wednesday, but a little unsure about what the central bank will do next.
Futures tracking the Dow Jones Industrial Average were down 4 points, effectively trading flat. S&P 500 futures climbed 0.2%, with the benchmark index on the brink of setting a new closing high, while contracts tied to the tech-heavy Nasdaq 100 added 0.3%.
The biggest story for markets this week is likely to be the Federal Open Market Committee’s monetary policy decision on Wednesday. Wall Street is counting on a quarter-point rate cut–but Chair Jerome Powell is expected to strike a hawkish tone in his post-decision press conference, meaning investors’ focus could quickly turn to what the Fed does in January and beyond.
“Beyond the headline move, the tone of Chair Powell’s press conference and the accompanying statement will be critical,” Deutsche Bank macro strategist Jim Reid said. “We expect Powell to emphasize that the hurdle for further cuts in early 2026 is high, signalling a near-term pause.”
Earnings from software developer Oracle and chip maker Broadcom could also shift the market this week, with investors pondering how long the artificial-intelligence rally can carry on once the Fed calls time on its rate cuts.
The yield on the 10-year Treasury note climbed 1 basis point to 4.15% on Monday. The dollar was flat against a weighted basket of its peers, and gold slid 0.1% to $4,237 an ounce. Bitcoin, the largest cryptocurrency by total market capitalization, was up 2.8% to $91,843 over the past 24 hours.