Stock futures showed little movement on Monday morning, with the Dow Jones Industrial Average continuing its seven-day losing streak ahead of a pivotal week dominated by the Federal Reserve’s central bank meeting.
Futures tied to the Dow edged up by 49 points, or about 0.1%. Similarly, S&P 500 futures saw a slight increase of less than 0.1%, while Nasdaq 100 futures also hovered just above the flatline.
This calm trading came after a sluggish week for the markets. The Dow dropped 1.8%, marking a seven-day losing streak, while the S&P 500 declined 0.64%, retreating in four of the past five sessions. However, the Nasdaq Composite managed to outperform with a modest 0.34% gain for the week.
The broader stock market trend in recent weeks has shifted towards a narrow, tech-heavy rally, with gains concentrated in select companies. Joe Mazzola, head of trading and derivatives strategy at Charles Schwab, noted that the rally has become increasingly concentrated within a few major names, raising questions about its sustainability.
Looking ahead, the primary event this week is the Federal Reserve’s meeting on Tuesday and Wednesday. The central bank is expected to announce a 0.25 percentage point rate cut. Investors will be closely watching the Federal Open Market Committee’s policy statement and comments from Fed Chair Jerome Powell for clues on the future direction of interest rates.
In addition to the Fed meeting, Monday will see the release of key economic data, including preliminary purchasing managers index readings, which could provide further insights into economic conditions.
On the individual stock front, MicroStrategy shares may experience volatility after being added to the Nasdaq 100 index, a move that could influence its stock price.
European markets opened mixed, with the Stoxx 600 index fluctuating between slight losses and gains, following a 0.77% decline last week. Traders are also eyeing potential shifts in monetary policy, with expectations that the Fed may pause its rate-cutting cycle in January after this week’s anticipated reduction.
CNBC and Investor’s Business Daily contributed to this report.
