U.S. Stock Futures Hold Steady Ahead of Key Fed Decision

U.S. stock futures were steady on Sunday evening as investors looked ahead to this week’s Federal Reserve meeting, where policymakers are widely expected to deliver another interest-rate cut. As of 20:15 ET (01:15 GMT), S&P 500 futures edged up 0.1% to 6,882.75, Nasdaq 100 futures also gained 0.1% to 25,755.75, while Dow Jones futures hovered near the flat line at 47,988.0.

The muted movement follows a second consecutive week of gains across major U.S. indexes. The Dow added roughly 0.5%, the S&P 500 advanced 0.3%, and the Nasdaq Composite rose 0.9%, supported by growing optimism that the Federal Open Market Committee will approve a third straight quarter-point rate cut during its December 9–10 meeting.

Market expectations strengthened after September’s Personal Consumption Expenditures (PCE) Price Index — the Fed’s preferred inflation gauge — showed cooler-than-expected readings. Core PCE increased just 0.2% month-over-month and 2.8% year-over-year, signaling easing inflation pressures. Softer labor market indicators and slowing consumer spending further reinforced calls for continued policy support.

Analysts note that the Fed’s updated projections, including its outlook for 2026, will be closely scrutinized. ING economists highlighted that while a more dovish stance is possible, the central bank may hesitate to signal additional future cuts too aggressively.

Investors are also preparing for a busy week of corporate earnings that could influence market sentiment. Reports from Lululemon, Costco, Broadcom, Oracle, and Adobe are expected to provide insights into consumer strength and technology sector momentum. Additionally, S&P Global announced that Carvana, CRH PLC, and Comfort Systems USA will be added to the S&P 500, a move that typically prompts portfolio adjustments among index-based funds.

With economic data cooling and rate cut expectations rising, markets are positioned for a pivotal week that could set the tone for year-end trading.