Dow futures slip marginally lower; hawkish Fed, budget woes weigh
Investing.com — U.S. stock futures traded marginally lower Monday, with investors still feeling the pressure of the Federal Reserve’s hawkish stance, while a potential U.S. government shutdown draws nearer.
By 06:15 ET (10:15 GMT), the Dow Futures contract was down 5 points, or 0.1%, S&P 500 Futures traded 2 points, or 0.1%, lower and Nasdaq 100 Futures dropped 12 points, or 0.1%.
The main indices on Wall Street look set to enter the final week of September on a negative note, with the indication from the U.S. central bank that interest rates will remain elevated for longer than expected weighing heavily.
The highly-indebted tech sector has been hardest hit, with the Nasdaq Composite on track to slump 5.9% this month, potentially its biggest monthly loss since December. The broad-based S&P 500 is set to drop 4.2% this month, while the blue-chip Dow Jones Industrial Average has shed 2.2%.
The Fed held rates steady last week, but signaled it might raise them one more time this year. It also pointed to only two rate cuts next year, half the number they anticipated in their last round of forecasts in June.
There are a number of U.S. central bank officials scheduled to speak this week, starting with Minneapolis Fed President Neel Kashkari later Monday. Their comments will be studied carefully for clues of future policy moves, particularly with key inflation data due for release at the end of the week.
Also weighing on sentiment is the ongoing budget stand-off, with the federal government set to run out of funding for its operations at the start of October.
Over the weekend, Democrats and Republicans in Congress both warned that there is a chance a deal will not be reached, with even a plan to create a 45-day extension to
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