US Stock Futures Quiet Ahead of Fed Meeting By Investing.com

Investing.com — U.S. stock index futures were slightly lower on Sunday evening, as caution ahead of the Federal Reserve’s next meeting this week kept investors largely on the sidelines in anticipation of further signals on interest rates.

Futures were muted after a largely mediocre Friday session on Wall Street, as recent economic data showed inflation remaining steady in November — a trend that could limit the Federal Reserve’s plans to cut interest rates.

It settled at 6,128.0 points, while it settled at 22,074.25 points by 18:33 ET (23:33 GMT). It settled at 44367.0 points.

Fed rate cuts are underway, and the 2025 outlook is in focus

The Fed is widely expected to do so at the conclusion of its two-day meeting on Wednesday, after the central bank began an easing cycle earlier in the year.

The move would cut interest rates by a total of 100 basis points in 2024.

But the focus this week will be squarely on the central bank’s plans to ease monetary policy in the future, especially in the face of potential inflation and labor market flexibility.

Analysts widely expect the central bank to signal a slowing pace of interest rate cuts next year, and recent comments from Federal Reserve officials suggest the same.

Interest rates are also expected to remain high in the long term, especially with the potential for inflationary policies under incoming President Donald Trump.

Traders showed that there is a 79.7% chance that the Fed will leave interest rates unchanged when it meets in January.

Wall Street is approaching record levels amid the strength of technology

While Wall Street indexes posted a series of mediocre closes in recent sessions, they remained within sight of the record highs set earlier in December. Technology stocks were the biggest driver of these rises, amid continued optimism about artificial intelligence.

Positive earnings from chipmakers like Broadcom Inc (NASDAQ:) also contributed to optimism about AI, as did expectations for new chips from NVIDIA Corporation (NASDAQ:).

The index closed stable at 6,051.09 points on Friday, while it rose 0.1% to 19,926.72 points. It fell 0.2% to 43,828.06 points.

Wall Street has been on a tear since Trump won the 2024 election in November. But gains have slowed in recent sessions amid growing caution about the possibility of higher interest rates in the coming years.