Stock Futures Straddle the Flatline as Market Rally Continues
Traders at the New York Stock Exchange are gearing up for another week of trading, as stock futures hovered near the flatline on Monday evening.
Futures tied to the Dow Jones Industrial Average dipped 22 points, or 0.06%, while S&P 500 futures and Nasdaq-100 futures inched down 0.04% and 0.1% respectively.
Despite the minimal movement in the futures market, stocks are coming off a winning session. The S&P 500 added 0.45%, putting it 1.2% away from its all-time closing high of 4,796.56 reached in January 2022. The tech-heavy Nasdaq Composite gained 0.6%, while the 30-stock Dow added 0.86 point.
The recent rally in stocks comes as the market reacts to last week’s indication of three likely interest rate cuts from the Federal Reserve in 2024. Signs of cooling inflation and a pullback in Treasury yields have also fueled the upward movement in risk assets.
“Markets are celebrating right now, not only disinflation, but the soft landing scenario,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “The Fed had indicated that they feel that we’re landing on soft landing island here, and we’re seeing risk assets participating across the board.”
With all three major averages on pace to finish December with gains, the S&P 500 is up 3.8% for the month and coming off its longest weekly winning streak since 2017. The Nasdaq and Dow are up 4.8% and 3.8%, respectively.
Looking ahead, a light week for economic data and earnings continues Tuesday with preliminary building permits data for November and housing starts. Earnings from FedEx are also on deck after the bell. Atlanta Fed President Raphael Bostic is scheduled to speak as well.
As the market remains optimistic about the possibility of a soft landing and continued gains, traders will be closely monitoring economic indicators and corporate earnings for any hints of potential headwinds.