Equity futures flat as investors weigh the Fed’s next policy move and wait for a busy earnings week

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Equity futures flat as investors weigh the Fed’s next policy move and wait for a busy earnings week


Traders on the NYSE floor, Oct. 12, 2022.

Source: New York Stock Exchange

Equity futures were little changed on Sunday night as investors considered a possible slowdown or pause in rate hikes by the Federal Reserve and anticipated a busy week for earnings.

Futures tracking the Dow Jones Industrial Average were down 12 points, or 0.04%. S&P 500 futures fell 0.16% along with Nasdaq 100 futures.

On Friday, key averages ended the week higher after briefly losing momentum in January. The Nasdaq is up slightly in his week. However, the Dow and S&P each posted losses week after week. All major averages for the month remain green. The Nasdaq is leading the rest year-to-date, with him up 6.44%.

“Markets are increasingly frenzied that high inflation is rapidly receding and the period of tight monetary policy is coming to an end,” said Brian Levitt, global market strategist at Invesco. “Although it is likely that we will still face challenges, we believe the market is likely to be in a sustained recovery.”

Investors have been weighing the possibility that the Fed is preparing to slow the pace of rate hikes to fight inflation, as last week’s economic data showed. Falling wholesale prices and retail salesThey also soak up comments Friday when Fed President Christopher Waller said he would support a rate hike by a quarter percent at the next meeting.

market priced 99.7% chance of a 25 basis point hike, according to CME Group datawhich puts the interest rate in the target range of 4.5% to 4.75%.

The Fed will meet next week, January 31st and February 1st, so there will be no Fed official speeches on the calendar. Consumer Expenditure Price Index released on Friday.

Meanwhile, the income and expenditure report can keep the market tenseabout 40% of the Dow are set to release their latest earnings, giving investors more insight into how companies are navigating inflation and interest rates.Microsoft, IBM, Tesla, Visa and Mastercard are on deck. some of the big names in

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