S&P 500 futures edged higher Monday as investors awaited a batch of key earnings reports and a major policy decision from the Federal Reserve.
Investors are coming off a positive streak of gains for the Dow Jones Industrial Average. The blue-chip Dow eked out a 2.51-point gain on Friday, finishing higher for the 10th day in a row and marking its longest rally since 2017. The S&P 500 finished the week up by 0.7%, while the Nasdaq Composite fell 0.6% in the same period.
Stocks are riding high heading into a busy week that some market participants worry could try the recent rally. Investors anticipate the Fed will increase rates by a quarter percentage point at the conclusion of its meeting on Wednesday. They will be listening to comments by Chair Jerome Powell to get a sense of the central bank’s position on what happens next as it tries to navigate a soft landing for the economy.
Earnings results will also shift into high gear in the week ahead, with Thursday being the most intense day. About 40% of the Dow and 30% of the S&P 500 will give their financial updates during the week, including Alphabet, Microsoft and Meta. Several big pharma companies are getting ready to report and it’s a big week for industrial companies and big oil as well.
“This week will offer plenty of opportunity to test the stock market rally that began on October 12 last year and has carried forth from the beginning of this year through last Friday,” Oppenheimer’s John Stoltzfus wrote on Monday.
Traders will also watch for the personal consumption expenditures index, the Fed’s preferred inflation gauge, which is due at the end of the week.
— CNBC’s Robert Hum contributed reporting.