U.S. stock futures remained relatively unchanged on Monday as investors gear up for the Federal Reserve’s policy meeting scheduled to take place later this week.
Dow Jones e-minis were up 13 points, or 0.04% on Monday morning, while S&P 500 e-minis remained unchanged. Nasdaq 100 e-minis slipped by 1 point, or 0.01%.
Last week’s wave of earnings reports proved relatively upbeat, with the likes of Alphabet Inc, Microsoft Corp, and Meta Platforms Inc beating estimates and providing hope for strong earnings going forward. The S&P 500 was boosted to a second consecutive monthly gain following the tech earnings boom.
With worries of an impending U.S. recession starting to subside, recent economic data has given rise to market expectations of another 25-basis point interest rate hike by the Federal Reserve this week. CME Group’s FedWatch tool has given a 90% probability to the likelihood of a 25 basis point rise.
Banking stocks remain unstable, with First Republic Bank tanking 38.5% in premarket trading. JPMorgan Chase is now set to purchase the majority of the company’s assets and operations in a deal engineered by the FDIC.