US pre-open: Futures higher as traders look ahead to FOMC decision
Wall Street futures were slightly higher ahead of the bell on Monday as market participants look ahead to the outcome of the Federal Reserve's two-day policy meeting later in the week.
As of 1245 GMT, Dow Jones futures were up 0.21%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.24% and 0.44% firmer, respectively.
The Dow closed 86.06 points lower on Friday, extending losses recorded in the preceding six sessions.
This week's primary focus will be the outcome of the FOMC's monetary policy meeting on Wednesday, with market participants widely expecting to see the central bank cut its benchmark overnight interest rate by a further 25 basis points.
Trade Nation's David Morrison said: "US stock index futures began the week on the front foot this morning. All four majors were trading in positive territory, shrugging off a mixed close on Friday night, and a generally disappointing week.
"Following last week's inflation data, the consensus expectation is that the Fed will announce a 25 basis point interest rate cut following the close of its two-day meeting on Wednesday. If so, that would mean the Fed has cut by 100 basis points this year, or more accurately, since September. This is short of 150 points priced in at the beginning of the year, yet it has still provided a strong tailwind for equities in 2024. As things stand, the Fed is forecast to cut by a further 50 basis points next year, although much depends on inflation resuming its previous downward trend."
On the macro front, the New York Empire State manufacturing index will be published at 1330 GMT, while a preliminary reading of S&P Global's December manufacturing and services PMIs will follow at 1445 GMT.
No major corporate earnings were slated for release on Monday.
Reporting by Iain Gilbert at Sharecast.com