Wall Street Holds Near Record Highs

U.S. stock futures traded largely steady on Monday, as investors awaited a pivotal Federal Reserve policy meeting later this week.

At 10:40 GMT, Dow Jones Futures rose 85 points, or 0.2%, S&P 500 Futures gained 5 points, or 0.1%, while Nasdaq 100 Futures slipped 16 points, or 0.1%.

Last week, all three major U.S. indices reached fresh record highs, supported by growing expectations of an imminent rate cut. The S&P 500 rose 1.6%, the Dow gained 1%, and the Nasdaq Composite surged 2%.

Federal Reserve in Focus

The Fed concludes its two-day meeting on Wednesday, with markets widely anticipating the first rate cut since last December. Weakness in the labor market, coupled with softer inflation pressures, has underpinned confidence in a 25 basis point reduction.

According to CME’s FedWatch Tool, investors assign a 95% probability of a quarter-point cut, with a 5% chance of a deeper half-point move. The central bank’s target rate currently stands at 4.25%–4.5%.

Traders will also be scrutinizing the Fed’s updated projections and Chair Jerome Powell’s remarks for signals on the future path of monetary policy.

Technology Sector Developments

Optimism surrounding artificial intelligence investment helped propel equities last week, led by strong earnings in the technology sector.

However, Nvidia came under pressure in premarket trade Monday after China’s regulator announced an extended antitrust investigation, raising concerns over compliance with domestic competition law.

Oil Prices Extend Gains

Crude oil prices rose, extending last week’s momentum amid supply concerns linked to the Russia-Ukraine conflict.

At 05:40 ET, Brent futures climbed 0.4% to $67.26 per barrel, while WTI futures gained 0.5% to $63.02 per barrel.

Prices were supported after Ukrainian drone strikes targeted key Russian facilities, including Primorsk export terminal and the Kirishinefteorgsintez refinery, raising the risk of significant production losses for Moscow’s top customers in India and China.