Stocks looked set to edge higher on Monday, although investors appeared reluctant to make any big moves with a Federal Reserve interest-rate decision looming.
Futures tracking the Dow Jones Industrial Average were up 71 points, or 0.2%. Contracts tied to the S&P 500 climbed 0.2%. Nasdaq 100 futures rose 0.2%, after the tech-heavy index notched another record high on Friday.
The Fed’s decision on Wednesday is likely to be the main factor driving markets this week. Investors are betting the central bank will close out the year with three straight rate cuts, amid signs the labor market is softening.
Stocks could slide if policymakers sound more hawkish. But if the Fed does lower rates and signal that more easing is coming, expect a broad market rally.
“Just because stocks are at record highs, does not mean a pullback is imminent,” UBS Wealth Management managing director Brian Buetel said. “We expect modest upside between now and the end of the year, and the bull market continuing to gain steam into 2026, as investors have plenty of earnings momentum runway to work with.”
The Bank of England, Bank of Japan, and Bank of Canada are all set to announce policy decisions this week, too.
The yield on the benchmark 10-year U.S. Treasury note climbed 1 basis point to 4.08% early Monday. The U.S. dollar was flat against a weighted basket of its peers, and gold slipped 0.4% to $3,672 an ounce.