Traders on the floor of the New York Stock Exchange on September 9, 2024.
Spencer Pratt | Getty Images News | Getty Images
Stock index futures edged higher on Monday as excitement over last week's rate cut pushed the Dow Jones Industrial Average to a record closing level.
Futures linked to a 30-stock index rose 26 points, or 0.1%. S&P 500 Index Futures and Nasdaq 100 Futures Each rose 0.2%.
Prior to this, Wall Street stocks scored a victory, and the Federal Reserve decided to cut interest rates by 50 basis points, which was the first rate cut in four years. Despite some volatility following the initial announcement, stocks rose over the next few days.
this Dow Chemical It closed at its highest ever closing price on Friday, significantly above 42,000 points. All major stock indexes rose more than 1% on Wednesday S&P 500 Index Also set a new record.
“I view this week’s rate cut as a signal that the Fed is willing to provide insurance against excessive labor market weakness if it needs it,” Ronald Temple, chief market strategist at Lazard, said in a note on Friday. Take action quickly.
“The reality is that a 25 basis point or 50 basis point rate cut will not materially change the near-term trajectory of the economy,” he said. “But the signal was still important, and the market responded the next day, sending the S&P 500 to a new all-time high.”
Investors will focus on economic data on services and manufacturing on Monday. They will also focus on speeches by Atlanta Fed President Raphael Bostic, Chicago Fed President Austen Goolsby and Minneapolis Fed President Nir Kashkari, to gain insight into what the central bank will do next.