US stock futures were steady on Tuesday, with the possibility of an eighth straight weekly win still in sight. Despite warnings that expectations of interest rate cuts may be excessive, investors remain optimistic.
Dow Jones Industrial Average (^DJI), S&P 500 (^GSPC) and Nasdaq 100 (^NDX) futures held just above the flat line. There were marginal gains in stock market indicators on Monday, with the Dow Jones notching another record close.
Recent enthusiasm in the stock market has eased slightly as Federal Reserve officials try to temper expectations of an imminent rate cut in March. They stressed that it is premature to assume that the central bank has concluded its rate-hiking cycle and said future decisions will be based on data.
In contrast, the Bank of Japan chose to keep interest rates below zero on Tuesday, giving no indication of an exit from negative levels.
Despite these warning signs, American investors seem to be overlooking them, at least for now. Friday’s upcoming update on the personal consumption expenditures price index, a key inflation measure for the Federal Reserve, may influence the debate over the timing and pace of potential rate cuts.
Additionally, attention is focused on oil prices as more companies, following BP’s lead, avoid Red Sea transits following recent maritime attacks. West Texas Intermediate (CL=F) and Brent (BZ=F) crude oil futures traded near the flat line, at around $72 and $78 a barrel, respectively.
Setting records:
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The Dow Jones Industrial Average (^DJI) gained 0.86 points on Monday, securing another record close.
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Monday’s close of the S&P 500 (^GSPC) put the index within 60 points of its record close of 4,796.56 on January 3, 2022.
Key events today:
Also read: Wall Street sees positive start as investors anticipate key economic data and influence from the Federal Reserve