Stock futures little changed as investors await key Fed decision: Live updates

Stock futures were little changed Monday morning as investors awaited the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut interest rates for the first time since 2020.

S&P 500 Futures It decreased by 0.1%, while Futures are linked to the Dow Jones Industrial Average. Financial sector stocks rose about 100 points, or 0.2%. Nasdaq 100 Futures It decreased by 0.4%.

apple Apple shares fell in early trading after analysts at firms including Bank of America and JPMorgan suggested that shipping times could indicate lower demand for the iPhone 16 Pro models compared to a year earlier.

The S&P 500 is less than 1% away from its record high set in July and could set an all-time high this week. After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green, with the S&P 500 up 1% from its record high set in July. Standard & Poor’s 500 Heavy technology Nasdaq Composite They just finished their best week of 2024.

The Federal Reserve is scheduled to meet on Tuesday and Wednesday and is widely expected to deliver its first rate cut since it began raising rates in March 2022. The cut this week would be a pivotal move, as many investors hope the decision will lower corporate borrowing costs and improve overall earnings growth — boosting economic growth.

The overnight lending rate is currently 5.25% to 5.5%, and traders are divided on whether the central bank will cut rates by 25 or 50 basis points, according to a CME Group report. feed watch tool.

Stocks typically post strong gains during cycles when initial interest rate cuts are able to support economic expansion, said Brian Belsky, chief investment strategist at BMO Capital.

“As long as nothing breaks in the economy, U.S. stocks remain firmly in a bull market, but with a remarkably strong year-over-year performance before the first rate cut, future gains are likely to be relatively muted by historical norms, in our view,” he said in a note on Friday.