Stock futures flat as indices exit winning month and investors eye Fed meeting

Stock futures flat as indices exit winning month and investors eye Fed meeting

Fed policy will hit markets in Q2, Q3 of next year, says Treasury Partners' Richard Saperstein

Stock futures are flat Monday night as traders put a successful month behind them and look ahead to Wednesday’s Federal Reserve interest rate decision.

Futures linked to the Dow Jones Industrial Average were up 8 points, almost flat. Futures linked to the S&P 500 and Nasdaq 100 gained 0.1% and 0.2%, respectively.

Monday’s trading marked the end of the Dow’s best month since 1976, ending up 13.95% as investors divested from technology and hedged their hopes in loyal companions like banks. The S&P 500 and Nasdaq Composite gained about 8% and 3.9%, respectively.

Big Tech took the spotlight last week as the giants’ shares tumbled on disappointing earnings, temporarily weighing on the Nasdaq. Meanwhile, strong results in earnings from Dow constituents such as Caterpillar and McDonald’s sent the index on an upward trend over the week.

Earnings season continues Tuesday with Uber, Pfizer and Fox before the bell and Advanced Micro Devices and Airbnb after.

The Fed’s November meeting also begins on Tuesday, with many market participants expecting a rate hike of 75 basis points. Many will look to the Fed’s statement and Fed Chair Jerome Powell’s question-and-answer section for clues as to policymakers’ fight against inflation.

“We’re fairly confident that market participants appear to be pricing in a 75 basis point hike,” said Jason Ray, founder of Zenith Wealth Partners. “But looking ahead to how they will address [it] and see if they change their language on inflation or the pace of rate hikes going forward is something we’ll be watching closely.”

IInvestors will also be watching for economic releases on Tuesday, including September job vacancies and construction spending data, as well as the October ISM manufacturing report.

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