Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York, August 8, 2022.
Andrew Kelly | Reuters
S&P 500 futures climbed Monday, as Wall Street awaits guidance on monetary policy from the Federal Reserve this week.
Futures tied to the S&P 500 ticked up 0.3%. Dow Jones Industrial Average futures hovered near the flatline, while Nasdaq-100 futures added 0.6%.
Shares of Alphabet rose 4% after Bloomberg News reported that Apple was in talks with Google to include the company’s Gemini AI in iPhones.
The Fed is set to start its two-day policy meeting Tuesday, with an announcement expected Wednesday.
According to the CME FedWatch Tool, Fed funds futures are currently pricing in a 99% likelihood that the Fed will leave benchmark interest rates unchanged this week. However, the expectation for a June cut has ticked down in recent days to about 55%.
“[This] week’s Fed meeting could determine the direction for the market, particularly if the Fed telegraphs that rates need to remain steady, even for just a bit longer,” LPL Financial chief global strategist Quincy Krosby wrote in a Friday note. “That could be what’s needed to allow this market to absorb gains and consolidate before the new earnings season begins.”
Inflation concerns have pressured stocks in recent days, with the S&P 500 set to enter Monday trading riding a two-week losing streak. The 30-stock Dow and Nasdaq are also coming off marginal losses.
A hotter-than-expected February core and wholesale inflation reading frustrated equities and sparked anxiety that the central bank may be partial toward higher interest rates for longer before its policy meeting begins on Tuesday.
Investors also looked ahead Monday to Nvidia’s GTC conference, where the chipmaker is expected to unveil new products and plans related to artificial intelligence. Nvidia shares are up a whopping 77% this year.
