United States stock futures moved slightly lower on Sunday night (Monday AEST) after Wall Street wrapped up a strong week that saw all three benchmark averages close at new record highs.
By 9:25 am AEST (11:25 pm GMT), Dow, S&P 500, and Nasdaq 100 futures were each down around 0.1%.
The major averages ended last week with solid gains. The S&P 500 rose 1.2%, the Dow added 1%, and the Nasdaq gained 2.2%.
The small-cap Russell 2000 also surged 2.2%, extending its winning streak to seven consecutive weeks.
The advance followed the Federal Reserve’s decision to reduce interest rates by a quarter percentage point, its first cut since December.
The move had been widely anticipated, though initial market volatility gave way to optimism after investors interpreted the step as a dovish signal amid signs of a slowing labour market.
Markets are now pricing in two more quarter-point reductions by the end of the year, according to the CME Group FedWatch Tool.
ANZ analysts commented in a note to clients: "In the coming week, several Fed policymakers are set to speak. Importantly, Powell is set to speak on the economic outlook on 23 September (Tuesday).
"It is reasonable to expect that he will reiterate that the Fed has begun the process of shifting policy from restrictive towards neutral."
Investors will also closely monitor economic data for confirmation of the Fed’s expected easing path. The release of the personal consumption expenditures price index, the central bank’s preferred measure of inflation, is due this week and is expected to show pricing pressures remain elevated.
Market participants anticipate inflation will stay contained enough to allow the Fed to maintain its current stance.
