(Reuters) – U.S. stock index futures were mixed in muted trading on Monday as investors waited for new economic data and commentary from Federal Reserve officials for further clarity on monetary policy.
Futures on the S&P 500 fell slightly after hitting multiple record highs last week, while the tech-heavy Nasdaq edged higher as mega-cap stocks like Apple, Microsoft and Nvidia rose between 0.2% and 0.6%.
The blue-chip Dow was the only one of the three major indexes to post a weekly decline on Friday, while the Nasdaq closed for the fifth straight year and posted a 3.2% gain for the week.
However, some investors are concerned about the sustainability of the stock rally, as mega-cap growth and technology stocks trailed most of Wall Street’s gains this year.
Goldman Sachs still raised its year-end target for the S&P 500 Index for 2024 from 5,200 previously to 5,600, representing an increase of about 3.1% from the index’s last close.
The economic schedule for the week on Tuesday includes retail sales for May, including industrial production, the start of the housing market and S&P flash PMI data later in the week.
The New York Fed’s Manufacturing Survey is due before markets open Monday. Comments are also expected later in the day from John Williams of the New York Fed and Patrick Harker of the Philadelphia Fed.
The Federal Reserve’s recent aggressive projections provide some contrast to several data pointing to growing weakness in the economy. The central bank cut its expectations for three rate cuts in 2024 to just one rate cut Wednesday.
However, according to LSEG data, market prices still show expectations of around two 25 basis point cuts this year. The CME FedWatch tool shows that there is still easing from the September meeting.
“Chairman Jerome Powell characterized the US consumer as ‘solid’ and unless there is another downside surprise here, we may not see market prices for 1-1/2 Federal Reserve rate cuts move significantly this year,” ING analysts said.
Minneapolis Fed President Neel Kashkari said in an interview on Sunday that a Fed rate cut in December was a “reasonable prediction.”
At 5:48 a.m. ET, the Dow e-minis were down 55 points, or 0.14 percent, the S&P 500 e-minis were down 3 points, or 0.06 percent, and the Nasdaq 100 e-minis were down 29. .5 points or 0.15%.
Autodesk shares rose 4% on a report that activist investor Starboard Value had bought a roughly $500 million stake in the software maker.
A shorter trading week is in store as markets are closed on Wednesdays.
(Reporting by Lisa Mattackal in Bengaluru; Editing by Devika Syamnath)
