At the beginning of the week's trading, US stock futures witnessed only limited change, after the S&P 500 index achieved its highest level ever last week.
S&P 500 futures rose 0.1%, and Nasdaq futures rose 0.2%. Dow Jones Industrial Average futures added 58 points, or 0.2%, at the beginning of the week's trading.
This comes as markets await two important events this week that may determine the future of the federal interest rate policy
The S&P 500 index ended last week’s trading at its highest level ever, Friday, January 19, exceeding the previous record level during the day at 4818.62, which was recorded in January 2022.
This closing confirmed the rise the index has witnessed since it closed at its lowest level on October 12, 2022.
It seems that Wall Street's strength will depend on whether the US Federal Reserve will be able to achieve a smooth economic downturn or not.
Investors are hoping for a series of record interest rate cuts starting in March, although they are less confident that the initial cut will bear fruit.
A survey released on Friday, January 19, showed that consumers have become more confident about the direction of the economy and inflation at the beginning of 2024, despite continuing concerns about the looming slowdown.
The University of Michigan Consumer Survey recorded a reading of 78.8 for January, the highest level since July 2021 and an increase of 21.4% from a year ago.
Statements by Fed members
Chicago Federal Reserve Bank President Austan Goolsbee said on Friday that the Fed needs more inflation data before making any judgment to cut interest rates.
Atlanta Federal Reserve Bank President Rafael Bostic also said on Thursday that the baseline for starting cuts is in the third quarter.
Traders now expect about a 47% chance of a rate cut in March, down from 71% last week, according to CME's Fed Watch tool.
