US stock futures hold steady with Fed, interest rate cuts on tap By Investing.com

Investing.com– U.S. stock index futures were little moved in evening trade on Sunday as investors braced ahead of a Federal Reserve meeting this week where the central bank is likely to cut interest rates.

Markets were also somewhat cautious following reports of a second assassination attempt on Republican presidential candidate Donald Trump, although the former president was unharmed.

rose slightly to 5,693.25 points, while settling at 19,768.75 points by 19:30 ET (23:30 GMT). increased by 0.1% to 41,858.0 points.

Fed meeting looms, markets split on rate cuts

The Fed is expected to start cutting interest rates, although traders are largely divided on the extent of the potential cut.

Traders price with a 50% chance of a 50 basis point discount and a 50% chance of a 25bps discount.

Wednesday’s cut is likely to set the tone for the Fed’s plans to begin easing monetary policy as it faces some concerns about a shrinking economy and labor market. But recent economic readings have shown that inflation has remained sticky.

Lower rates are also expected to provide a more favorable environment for equities in the coming months.

Wall St backed by technology; Dow, S&P near record highs

Wall Street indexes put in a strong performance last week despite sticky inflation readings as heavy tech stocks were supported by some bargain buying and a resurgence of artificial intelligence hype.

Broader stocks also rose with bets on interest rate cuts leading to plays in economically sensitive sectors.

Last week, it rose 4% to 5,626.02 points, while it rose 2.6% to 41,393.78 points. Both indexes were near record highs.

The value rose nearly 6 percent to 17,683.98 points, but was well below the peaks reached earlier this year.

The second assassination attempt on Trump

Markets have so far shown limited reaction to reports of a second assassination attempt on Trump. Secret Service agents reportedly engaged a gunman outside Trump’s golf course in West Palm Beach, Florida.

The gunman fled the scene and was later apprehended by police, according to reports.

Trump was unharmed in the incident, which is potentially the second attempt on his life after a shooting at a rally in July.