(Reuters) – U.S. stock index futures were mixed in quiet trading on Monday as investors awaited new economic data and comments from Federal Reserve officials for more clarity on monetary policy.
S&P 500 futures fell slightly after hitting several record highs the previous week, while the tech-heavy Nasdaq rose as mega-cap stocks including Apple, Microsoft and Nvidia rose between 0.2% and 0.6%.
The blue-chip Dow Jones was the only one of the three major indexes to post weekly declines on Friday, while the Nasdaq posted its fifth straight record high and gained 3.2% for the week.
However, some investors expressed concern about the sustainability of the stock rally as outsized growth and technology stocks have been behind most of Wall Street’s gains this year.
Goldman Sachs still raised its year-end 2024 target for the S&P 500 to 5,600 from 5,200 earlier, representing a roughly 3.1% rise from the index’s last close.
On the economic docket for the week is May retail sales data on Tuesday, with industrial production, housing starts, and S&P Purchasing Managers’ Index (PMI) data among other key releases scheduled for later in the week.
The New York Fed’s manufacturing survey is expected before markets open on Monday. Comments from John Williams of the New York Fed and Patrick Harker of the Philadelphia Fed are also expected later in the day.
The recent upbeat outlook from the Federal Reserve has been somewhat contradicted by several data releases indicating growing weakness in the economy. The central bank cut its forecast for three interest rate cuts in 2024 to just one on Wednesday.
However, market prices still show expectations of two cuts of around 25 basis points this year, according to LSEG data. The CME FedWatch tool shows that easing is still visible as of the September meeting.
“Chairman Jerome Powell described the US consumer as ‘strong’ and unless there is another bearish surprise here, we cannot see the market pricing in 1-1/2 Fed rate cuts this year moving significantly,” analysts at ING said in a note.
Minneapolis Fed President Neel Kashkari said the Fed’s December rate cut was a “reasonable prediction” in an interview Sunday.
At 5:48 a.m. EST, the Dow Jones e-mini was down 55 points, or 0.14%, the S&P 500 e-mini was down 3 points, or 0.06%, and the Nasdaq 100 e-mini was up 29.5 points, or 0.15%. .
Autodesk shares jumped 4% after a report that activist investor Starboard Value bought nearly $500 million in the software maker.
There is a shorter trading week as the markets will be closed on Wednesday.
(Reporting by Lisa Mattakal in Bengaluru; Editing by Devika Simnath)
