Dow futures rose 23 points. S&P 500 futures were up 0.09% and Nasdaq 100 futures added 0.14%.
The two-day Fed policy meeting is likely to dominate investor behavior this week. Even if the central bank is not expected to take any action, its forecasts for interest rates, inflation and the economy could move the markets.
Fed Chairman Jerome Powell spoke to the press after the central bank released its statement at 2 p.m. ET on Wednesday. It should affirm the Fed’s commitment to a policy of ease. However, concerns about inflation and how the Fed might react are likely to influence market direction, particularly after a higher than expected consumer inflation reading for May was released on Thursday. latest.
“In light of recent outsized inflation reports, this week’s Federal Reserve meeting will be reviewed for any telltale signs that the Fed’s timeline to raise funds rate or cut QE is advanced,” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC.
“Any evidence to suggest that monetary tightening is moving forward is likely to cause volatility in the stock market,” Paulsen added.
US stocks ended last week with a closing record for the S&P 500 and the start of a rotation to growth stocks.
Last week, the 30-stock Dow Jones Industrial Average fell 0.8%, but the S&P 500 rose 0.4%, for its third consecutive positive week. The Nasdaq Composite outperformed with a gain of nearly 1.9%, recording its fourth consecutive winning week as tech trading returned to favor.
“Because the S&P 500 Index hit a new high last week, investors will be watching to see if it signals even higher levels in the near term,” said Paulsen.
Investors are giving growth stocks another chance as bond yields fall. The 10-year Treasury fell below 1.43% on Friday, a three-month low. Ark Innovation of Cathie Wood, an ETF that focuses on disruptive technologies, returned around 6% last week.
Boosting cryptocurrency sentiment, Tesla CEO Elon Musk said on Sunday that the company would resume bitcoin transactions once it confirms miners are using reasonable clean energy. Bitcoin last traded 8.6% around $ 39,000, according to Coin Metrics.
The meme stocks also gained attention last week. AMC Entertainment, Clover Health Investments, GameStop and more experienced volatile trading as the group continued to gain the attention of social media investors on Reddit.
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– with reporting from CNBC’s Patti Domm.