Traders work on the New York Stock Exchange trading floor during morning trading on September 23, 2024.
Michael M. Santiago | Michael M. SantiagoGetty Images
U.S. stock futures were little changed on Monday after the S&P 500 and the Dow Jones Industrial Average set new closing records.
Futures linked to 30 stocks Dow Chemical It fell 36 points, or 0.08%. S&P 500 Index Futures It fell slightly by 0.09%. Nasdaq 100 Futures down 0.14%.
earlier that day, S&P 500 Index up 0.28% Dow Chemical Up 0.15%, both major indexes hit closing records. this Nasdaq Index It closed up 0.14%.
The gains were modest, but appeared to be a continuation of last week's gains after the Federal Reserve cut interest rates by half a percentage point. The federal funds rate currently ranges from 4.75% to 5.00%.
Rate-sensitive sectors such as utilities and financials have rallied in recent weeks on expectations that the Federal Reserve will cut interest rates. Paul Hickey, co-founder of Bespoke Investment Group, said four sectors in the S&P 500 will outperform the market through 2024, up from just two in July.
“There's a lot of change happening under the surface … you've seen the baton pass from these giant stocks to the broader market,” Hickey said Monday on CNBC's “The Closing Bell: Overtime.”
Quincy Krosby, chief global strategist at LPL Financial, said that while traders are happy about the big rate cut, the market may experience more volatility in the coming weeks.
“Markets will be highly sensitive to any signs of accelerating weakness in the economy, given that market momentum following the Fed's actions has pushed valuations slightly higher,” she said.
Traders will mull the latest economic data on Tuesday as the Conference Board releases its consumer confidence index for September. This month's Richmond Fed Manufacturing Index will also be released in the morning.
AutoZone and KB Home are also expected to report quarterly results.