By Barbara Kollmeyer, MarketWatch
U.S. stock futures inched up Monday but investors remained cautious ahead of a Federal Open Market Committee meeting this week, where they hope to get more guidance on possible interest rate cuts.
How are major indexes faring?
Dow Jones Industrial Average futures rose 42 points, or 0.2%, to 26,168, while S&P 500 futures gained 4.45 points, or 0.2%, to 2,889.25 and Nasdaq-100 futures added 23.25 points, or 0.3%, to 7,528.
On Friday, the Dow Jones Industrial Average fell 17.16 points, or 0.1%, to end at 26,089.61, while the S&P 500 index declined 4.66 points, or 0.2%, to 2,886.98. The tech-laden Nasdaq Composite Index shed 40.47 points, or 0.5%, to close at 7,796.66.
All indexes gained for a second week in a row with the Dow up 0.4%, the S&P 500 up 0.5% and the Nasdaq adding 0.7%.
What's driving the market?
The Fed will hog the limelight this week, with a two-day meeting kicking off Tuesday. Markets have been pricing in more than two rate reductions this year, on fears of the fallout from global trade tensions and fears of a slowdown in the economy. Investors will want to see if those expectations match up to what the Fed is thinking, though no move on interest rates is expected at this week's meeting.
Read:Five things to watch in the pivotal Fed meeting (http://www.marketwatch.com/story/five-things-to-watch-in-the-pivotal-fed-meeting-2019-06-15)
(http://www.marketwatch.com/story/five-things-to-watch-in-the-pivotal-fed-meeting-2019-06-15)But there's a possibility that investors could be disappointed, given recent data isn't exactly screaming out for a pre-emptive rate cut (http://www.marketwatch.com/story/the-fed-may-break-a-lot-of-stock-market-investors-hearts-next-week-2019-06-15). Investors will get more updates this week on the economy, starting with the June Empire manufacturing survey at 8:30 a.m. Eastern Time and then the National Association of Home Builders survey for June at 10 a.m. Eastern.
As for global trade, Commerce Secretary Wilbur Ross played down the likelihood of a major deal at the Group of 20 summit later this month, if President Donald Trump and China President Xi Jinping meet. The mostly outcome will be an agreement for the U.S. and China to keep talking, he told The Wall Street Journal in an interview (http://www.marketwatch.com/story/wilbur-ross-lowers-expectations-of-trade-deal-coming-from-g-20-talks-between-trump-xi-2019-06-16).
How are other markets trading?
The yield on the 10-year U.S. Treasury note rose 0.6% to 2.107%.
Asian markets closed mixed (http://www.marketwatch.com/story/asian-markets-mostly-higher-as-investors-await-fed-meeting-2019-06-16), with Hong Kong's Hang Seng Index rising 0.4% and China's Shanghai Composite Index inching up 0.2%. Japan's Nikkei 225 was flat, while in Europe, the Stoxx Europe 600 was flat.
Gold futures eased 0.4% to $1,338.30 an ounce and the U.S. dollar also slipped against a basket of its peers. West Texas Intermediate crude eased 0.6% to $52.18 a barrel.
(END) Dow Jones Newswires
June 17, 2019 05:45 ET (09:45 GMT)
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