During evening trading on Sunday, U.S. stock index futures experienced slight declines following volatile swings on Wall Street, driven by concerns over high interest rates. With attention shifting towards key PCE inflation data for potential rate insights, trading volumes remained subdued ahead of the Memorial Day holiday on Monday.
S&P 500 Futures edged down by 0.1% to 5,316.25 points, while Nasdaq 100 Futures slipped by 0.2% to 18,837.50 points as of 19:53 ET (23:3 GMT). Similarly, Dow Jones Futures retreated by 0.1% to 39,122.0 points.
Investors eagerly anticipate the release of the PCE price index data, which serves as the Federal Reserve’s preferred inflation gauge, scheduled for this Friday. While expectations suggest a moderation in personal spending and consumption, recent warnings from the Fed regarding persistent inflationary pressures have dampened prospects for interest rate cuts this year. Consequently, market participants have increasingly priced out expectations for a rate cut in September, with the CME Fedwatch tool reflecting greater confidence in the Fed maintaining rates at current levels.
Despite last week’s record highs in some Wall Street indexes, supported by positive earnings, notably from NVIDIA Corporation (NASDAQ), increased volatility has been observed near these peaks. While the NASDAQ Composite achieved a record-high close on Friday, other sectors experienced mixed performance. The S&P 500 and Dow Jones Industrial Average displayed varied weekly results, with the former ending largely flat and the latter declining by more than 2%.
The S&P 500 concluded Friday’s session at 5,304.72 points, marking a modest 0.7% increase, while the Nasdaq reached a record high of 16,920.79 points, closing with a 1.1% gain. Conversely, the Dow finished flat at 39,069.59 points.
