US stock futures tread water ahead of more Fed cues
Investing.com-- U.S. stock index futures moved little in evening deals on Tuesday following a positive, tech-fueled session on Wall Street, with focus turning squarely to the conclusion of a Federal Reserve meeting later in the day.
Renewed optimism over artificial intelligence, after market darling NVIDIA Corporation (NASDAQ:NVDA) unveiled pricing and shipment details for its new line of AI chips, was a key driver of gains on Wall Street during the session.
But this optimism was largely countered by anticipation of the Fed, which could provide a more hawkish outlook on interest rates following a string of hotter-than-expected inflation readings.
S&P 500 Futures fell 0.05% to 5,239.25 points, while Nasdaq 100 Futures rose 0.03% to 18,276.25 points by 19:16 ET (23:16 GMT). Dow Jones Futures steadied at 39,537.0 points.
The Fed is set to conclude a two-day meeting later on Wednesday, with markets broadly expecting the central bank to keep interest rates on hold.
But the bank’s statement on monetary policy, along with a post-meeting press conference by Chair Jerome Powell, will be closely watched for any cues on interest rate cuts.
Hotter-than-expected inflation prints for January and February spurred fears that the Fed could trim its outlook for rate cuts in 2024, given that it has repeatedly signaled that the path of inflation will drive any loosening in monetary policy.
Sticky inflation, coupled with recent signs of resilience in the U.S. economy, gives the Fed more headroom to keep rates higher for longer.
The S&P 500 clocked a record closing high on Tuesday, rising 0.6% to 5,178.51 points. The NASDAQ Composite rose 0.4% to 16,166.79 points, while the Dow Jones Industrial Average finished up 0.8% at 39,110.76
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