US pre-open: Futures little changed as FOMC remains in focus
Wall Street futures were little changed ahead of the bell on Tuesday as the future of monetary policy remained firmly in focus.
As of 1225 GMT, Dow Jones futures were up 0.12%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.13% and 0.16% firmer, respectively.
The Dow closed flat on Monday as market participants reevaluated their assessment of the FOMC's position on the state of the US economy.
Despite yesterday's cautious showing, major indices have rallied as of late, most notably after Federal Reserve chairman Jerome Powell indicated that there will likely be three interest rate cuts from the central bank in 2024. Also underlining sentiment was data showing that inflation had begun to cool and a pullback in Treasury yields.
Energy markets also remained in focus, with West Texas Intermediate down 0.43% at $72.16 a barrel and Brent crude 0.26% weaker at $77.75 a barrel on the back of yesterday's announcement that the US had put together a ten-nation coalition aimed at providing security in the Red Sea.
Scope Markets' Joshua Mahony said: "Markets continue to weigh up the possibility that last week’s FOMC-led surge may have been built on false hopes of a bumper year of easing ahead, with San Francisco Fed President Mary Daly noting her view that we will see three rate cuts next year. This is a far cry from the six rate cuts currently priced by the market. Meanwhile, the Chicago Fed President Austan Goolsbee has warned that markets may have misinterpreted Jay Powell's message, instead hearing what they wanted to hear.
"For now, markets remain steadfast in their approach, holding on to gains ahead of the key festive period. However, there is a feeling that we are pricing in a best-case scenario for 2024, and thus the risk appears firmly skewed towards potential disappointment. Whilst somewhat perverse, the best hope for equity market bulls would be a weaker economic picture, forcing the banks to put their foot on the gas."
On the macro front, November housing starts and building permits data will be out at 1330 GMT, while Atlanta Federal Reserve president Raphael Bostic will also deliver comments later in the day.
In the corporate space, logistics giant FedEx will report its latest set of quarterly earnings during the session.
Reporting by Iain Gilbert at Sharecast.com