U.S. stock index futures fell slightly on Sunday evening, cooling after optimism over interest rate cuts by the Federal Reserve pushed Wall Street to record highs last week, with technology shares rising the most.
Focus this week is on a host of key economic indicators, while several Fed officials, including Chair Jerome Powell, are also set to speak in the coming days.
S&P 500 Futures fell 0.1% to 6,715.25 points, while Nasdaq 100 Futures fell 0.1% to 24,849.50 points by 19:37 ET (23:37 GMT). Dow Jones Futures fell 0.1% to 46,587.0 points.
Wall St hits record high on rate cut cheer, tech strength
Wall Street indexes finished at record highs last week after the Fed cut interest rates by 25 basis points and signaled that more easing was likely in the coming months.
The central bank said that it was attempting to avoid further weakness in the labor market, and warned that sticky inflation would still factor into its decisions.
Markets largely welcomed the prospect of lower rates, especially amid some signs of cooling economic growth in the country.
The S&P 500 rose 0.5% to a record close of 6,664.36 points on Friday. The NASDAQ Composite rose 0.7% to finish at a peak of 22,631.48 points, while the Dow Jones Industrial Average rose 0.4% to 46,315.27 points.
Tech shares were the biggest driver of Wall Street, with Apple Inc (NASDAQ:AAPL) among the best performers as early sales indicators for its iPhone 17 line pointed to strong year-on-year growth.
Chipmaking and cloud stocks also benefited from optimism over sustained artificial intelligence demand, while positive earnings from delivery firm FedEx Corporation (NYSE:FDX), which usually act as a bellwether for the U.S. economy, also spurred gains.
Fed speakers, PMI data, and inflation on tap this week
A host of Fed officials are set to speak in the coming days, most notably Chair Jerome Powell on Tuesday.
Markets will be watching for any more cues from the Fed on interest rates, with the central bank having signaled a largely data-driven approach to future easing.
To that end, a host of key U.S. economic readings are also due this week. Purchasing managers index data for September is expected to provide more cues on U.S. business activity.
A final reading on second-quarter gross domestic product growth is also due this week.
PCE price index data– the Fed’s preferred inflation gauge– is due on Friday and is expected to provide more definitive cues on the central bank’s plans to cut interest rates.
Core PCE inflation is expected to remain largely above the Fed’s 2% annual target, while focus will be on any signs of higher inflation from increased trade tariffs.
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