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Traders work on the floor of the New York Stock Exchange during morning trading on January 31, 2024 in New York City.
Michael M. Santiago | Getty Images
Stock futures were slightly lower on Monday morning after U.S. Federal Reserve Chair Jerome Powell dashed investor hopes for interest rate cuts in the near term.
Futures tied to the S&P 500 dipped 0.2%. Futures for the Dow Jones Industrial average fell 74 points, or 0.19%, while Nasdaq 100 futures slipped 0.18%.
The moves come after the three major averages rose for the 13th week out of 14, powered by a stronger-than-expected January jobs report and solid earnings reports from Microsoft and Meta Platforms. The gains came even though Federal Reserve Chair Jerome Powell said Wednesday that the central bank would likely not cut rates in March, as some traders had been expecting.
“The fundamental narrative survived a robust stress test this week and it’s hard to poke a hole in either the earnings power of US tech or the broader growth/inflation tradeoff … the tactical setup, however, looks demanding and I’m a bit doubtful the next few months will sustain the same degree of upside torque that we witnessed in the past few months,” Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs, said in a note to clients on Saturday.
This week has another full slate of earnings, including McDonald’s on Monday and Ford on Tuesday.
Traders will also be keeping an eye on the Middle East, where the U.S. began airstrikes in Iraq and Syria on Friday. National security adviser Jake Sullivan told NBC News’ “Meet the Press” on Sunday that the U.S. plans to make “additional strikes” against Iran-backed groups.
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