US stock futures steady with Fed, rate cuts on tap

Investing.com– U.S. stock index futures moved little in evening deals on Sunday as investors hunkered down before a Federal Reserve meeting this week where the central bank is likely to cut interest rates. 

Markets were also somewhat cautious following reports of a second attempted assassination attempt on Republican presidential candidate Donald Trump, although the former president was unharmed. 

rose slightly to 5,693.25 points, while steadied at 19,768.75 points by 19:30 ET (23:30 GMT). rose 0.1% to 41,858.0 points. 

Fed meeting looms, markets split over rate cuts 

The Fed is set to and is widely expected to begin trimming interest rates, although traders are largely split over the scale of the potential cut.

Traders are pricing in a 50% chance of a 50 basis point cut, and a 50% chance of a 25 bps cut, showed. 

Wednesday’s cut is likely to set the tone for the Fed’s plans to begin easing monetary policy, as it grapples with some concerns over a cooling economy and labor market. But recent economic readings showed inflation remained sticky. 

Lower rates are also expected to provide a more accommodating environment for equities in the coming months. 

Wall St buoyed by tech; Dow, S&P near record highs 

Wall Street indexes saw a strong performance last week despite sticky inflation readings, as heavyweight technology stocks were buoyed by some bargain buying and a resurgence in hype over artificial intelligence.

Broader stocks also rose, with bets on interest rate cuts driving plays into economically sensitive sectors. 

The surged 4% to 5,626.02 points last week, while the rose 2.6% to 41,393.78 points. Both indexes were near record highs.

The surged nearly 6% to 17,683.98 points, but was well below peaks hit earlier this year. 

Second assassination attempt on Trump

Markets had so far shown a limited reaction to reports of a second assassination attempt on Trump. Secret Service agents reportedly engaged with a gunman outside Trump’s golf course in West Palm Beach, Florida. 

The gunman had fled the scene, and was later apprehended by the police, reports said. 

Trump was unharmed during the incident, which is potentially the second attempt on his life after a shooting at a rally in July.