U.S. Stock Futures Steady Ahead of Fed Rate Cut Decision

U.S. stock futures remained mostly flat as investors awaited a key Federal Reserve meeting this week, with markets widely pricing in a 25-basis-point rate cut. Last week, the Dow, S&P 500, and Nasdaq all closed at or near record highs, fueled by optimism over Fed easing, a cooling labor market, and strong momentum in artificial intelligence investments, notably highlighted by Oracle's positive cloud revenue outlook. Despite mixed inflation data, the market confidence in a Fed rate cut remains high, with only a small chance of a larger 50-basis-point reduction. The labor market showed signs of weakening, with slower non-farm payroll growth and rising unemployment, which bolstered expectations for easing monetary policy. Investors are also closely monitoring potential Fed governor appointments and upcoming corporate earnings from major companies like General Mills and FedEx. Overall, the market sentiment reflects cautious optimism as participants seek guidance from Fed Chair Jerome Powell and updated economic projections.