FX.co ★ US Futures Flat as Fed Meeting Eyed

On Monday, US stock futures remained stable as investors looked forward to this week’s crucial meeting of the Federal Reserve. The market currently anticipates a 96% probability of a 25 basis point interest rate cut on Wednesday, with a mere 4% chance of a more substantial half-point reduction. These expectations arise in response to recent US reports indicating a slowdown in the labor market and muted inflation figures. Investors are also monitoring the potential induction of Stephen Miran as a Fed governor before the meeting. Last week, the Dow rose by 0.95%, the S&P 500 increased by 1.59%, and the Nasdaq Composite grew by 2.03%, with all three indices reaching record highs. Optimism regarding artificial intelligence continues to support market sentiment, despite ongoing concerns about the economic outlook.