Investing Update

U.S. stock index futures traded marginally higher on Monday as investors paused for breath at record levels ahead of upcoming signals from the Federal Reserve.

At 06:05 ET (10:05 GMT):
– Dow Jones Futures increased by 30 points (0.1%)
– S&P 500 Futures rose by 10 points (0.%)
– Nasdaq 100 Futures climbed 45 points (0.2%)

Optimism surrounding potential interest rate cuts from the Federal Reserve drove the S&P 500 and Dow Jones Industrial Average to record highs last week. However, the NASDAQ Composite, despite also gaining, suffered from recent weaknesses in technology stocks, keeping it below its lifetime highs.

Fed Cues, PCE Inflation on Tap This Week

A number of Fed officials, including Chair Jerome Powell, will be speaking this week. Following a 50 basis points cut last week, a potential easing cycle could see rates fall by as much as 125 bps this year.

While Wall Street celebrated record highs from the cut, gains are expected to be limited due to the Fed’s less dovish outlook for the medium to long term, which anticipates that neutral rates might be higher than in the past.

The pace of the Fed’s easing will depend largely on the U.S. economy. This week, the PCE price index— the Fed’s preferred inflation gauge— is set to be released on Friday, alongside economic activity data from the service and manufacturing sectors. Additionally, U.S. House Republicans have unveiled a plan to fund the government for three months to avoid a partial shutdown.

Apollo to Invest in Intel?

In corporate news, Apollo Global Management has offered to invest up to $5 billion in struggling chipmaker Intel (NASDAQ: INTC). The investment is being considered by Intel’s management as the company faces a sharp decline in sales and plans to reduce its workforce by up to 15,000 employees.

Crude Gains on Middle East Tensions

Crude oil prices rose on Monday amid concerns that escalating conflict in the Middle East may disrupt regional supply.

By 06:05 ET, the Brent contract was up 0.2% at $73.83 a barrel, while U.S. crude futures (WTI) increased by 0.3% to $71.19 per barrel. Concerns over broader conflict have tightened global markets, contributing to a two-week rebound in crude prices from near three-year lows, after fears of supply disruptions from Hurricane Francine.

*(Ambar Warrick contributed to this article.)