Stock futures rose on Monday as investors gear up for the Federal Reserve’s latest interest rate decision due later in the week. Futures on the S&P 500 rose by 0.3%, while those on the tech-heavy Nasdaq Composite gained 0.7%. Contracts listed on the Dow Jones Industrial remained relatively unchanged.
Fed Chair Jerome Powell revealed that the U.S. central bank appears to be gaining the confidence to introduce interest rate cuts following the release of optimistic economic data. “The Fed may have less confidence on inflation than before, but it still has confidence in the disinflation trend,” Bank of America economists observed.
With attention remaining firmly on the US Federal Reserve, the Bank of Japan is also set to convene this week. It’s largely expected to bring an end to its negative-rate policy on Tuesday. The Bank of England is set to release its own interest rate policy decision later in the week as well.