U.S. Stock Futures Ease as Investors Await Fed Speeches and Key Inflation Data

U.S. stock index futures edged lower on Monday, pausing after record-setting gains last week fueled by optimism over Federal Reserve rate cuts. At 06:15 ET (10:15 GMT), Dow Jones Futures slipped 120 points, or 0.3%, S&P 500 Futures dropped 13 points, or 0.2%, while Nasdaq 100 Futures lost 58 points, or 0.2%.

The pullback followed a rally that saw the S&P 500 and Nasdaq Composite close at all-time highs for two straight sessions, supported by the Fed’s 25-basis-point rate cut and signals of further easing ahead. Trading volume on Friday surged to its highest level since April, underscoring investor enthusiasm.

Fed Officials and Inflation Data in Focus

Markets are now pricing in two additional quarter-point cuts by year-end, according to CME’s FedWatch tool. Against this backdrop, attention will turn to a series of Federal Reserve speakers this week, led by Chair Jerome Powell on Tuesday. His remarks, along with commentary from John Williams, Thomas Barkin, Raphael Bostic, and Michelle Bowman, are expected to offer further clarity on the trajectory of monetary policy.

Investors are also bracing for a slate of key U.S. economic releases. September PMI data, the final reading of second-quarter GDP, and Friday’s core PCE price index—the Fed’s preferred inflation gauge—will be critical. Economists expect the PCE to remain above the Fed’s 2% target, with added scrutiny on tariff-driven price pressures.

Goldman Sachs Lifts S&P 500 Forecasts

Adding to the bullish narrative, Goldman Sachs revised its S&P 500 targets higher, projecting the index at 6,800 by year-end, 7,000 in six months, and 7,200 within a year. The bank attributes these gains to strong earnings momentum, forecasting 7% EPS growth in both 2025 and 2026. Strategists emphasized that with long-term interest rates relatively stable, corporate earnings will remain the primary driver of equity performance.

Earnings in Spotlight: Micron, Jabil, Accenture

Corporate earnings will also shape sentiment this week. Micron Technology (NASDAQ: MU) reports after Tuesday’s close, with expectations buoyed by optimism across the semiconductor sector following strong results from peers Broadcom and Oracle. Later in the week, Jabil Circuit (NYSE: JBL), a key Apple supplier, will release earnings, with investors watching its AI-related infrastructure bets. Consulting firm Accenture (NYSE: ACN) also reports Thursday, though analysts warn AI-related disruption could weigh on its results.

Policy Risks for Tech Sector

Meanwhile, the Trump administration’s decision to impose a $100,000 annual fee on H-1B visas has drawn sharp criticism from major corporations including Microsoft, Alphabet, and Goldman Sachs. Companies have advised employees to avoid international travel to mitigate visa-related risks. The policy could become a new headwind for the tech sector, already navigating global trade tensions and regulatory challenges.