U.S. Equity Futures Steady After Dow Record as Powell Signals Possible Rate Cut
U.S. equity futures were little changed in early Asia trading on Sunday, holding near record territory after last week’s rally. Contracts on the Dow Jones Industrial Average edged up about 0.04%, while S&P 500 and Nasdaq 100 futures hovered around the flat line, suggesting a quiet start to the final week of August.
The subdued overnight action follows Friday’s surge, when the Dow climbed 846 points, or 1.9%, to a record 45,631.74. The S&P 500 advanced 1.5% to 6,466.91 and the Nasdaq Composite gained 1.9% to 21,496.53. The rally was sparked by Federal Reserve Chair Jerome Powell’s Jackson Hole remarks, which investors interpreted as opening the door to a potential policy easing as soon as next month. CME Group’s FedWatch tool now puts the probability of a quarter-point rate cut at the September meeting at roughly 84%, up from 75% earlier in the week.
Attention is shifting to a heavy earnings calendar headlined by Nvidia on Wednesday and Dell Technologies and Marvell Technology on Thursday. The chipmaker’s results will test whether the recent rotation out of megacap technology stocks persists or reverses. Traders are also bracing for Friday’s release of the July core personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, which economists expect to show a 2.9% year-over-year increase.
