Stock futures were flat on Tuesday morning as Wall Street built on a modest rebound ahead of another rate hike from the Federal Reserve.
Futures were marginally lower relative to the Dow Jones industrial average. S&P 500 futures fell 0.05%, and those for the Nasdaq 100 fell 0.03%.
The Federal Open Markets Committee begins its September meeting on Tuesday, and central bankers are expected to announce a 0.75 percentage point rate hike on Wednesday. Stocks fell in recent weeks as comments from Federal Reserve Chairman Jerome Powell and an unexpectedly warm August consumer price index report prepared traders for even higher rates until inflation eases.
“I think a lot of work was done last week to reset interest rate expectations,” said Angelo Kourkafas, investment strategist at Edward Jones.
“The stock market’s momentum is down. … until we get that pattern down [inflation] Readings, that high uncertainty and volatility that we see will be difficult to change,” Kourkafas added.
During a busy trading session on Monday, Stocks rallied in the afternoon They need to snap a two-day losing streak and recover some of their recent losses. The Dow rose 197 points, or about 0.6%. The S&P 500 and Nasdaq Composite rose 0.7% and 0.8%, respectively.
However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker An additional $1 billion in the third quarter. Shares fell 4.5% in extended trading.
On the economy, investors will get a fresh look at the housing market on Tuesday morning, with August reports for housing starts and building permits.