US stock index futures edge higher; more Fed cues awaited

Investing.com--U.S. stock index futures traded marginally higher Monday as investors paused for breath at record levels ahead of a slew of more signals from the Federal Reserve this week. 

At 06:05 ET (10:05 GMT), Dow Jones Futures traded 30 points, or 0.1%, higher, S&P 500 Futures gained 10 points, or 0.%, while Nasdaq 100 Futures rose 45 points, or 0.2%.

Optimism over interest rate cuts in the wake of the Federal Reserve's outsized reduction drove the S&P 500 and the Dow Jones Industrial Average to record highs last week. While the NASDAQ Composite also gained, recent weakness in technology stocks kept the index well below lifetime highs. Fed cues, PCE inflation on tap this week 

A string of Fed officials and members of the rate-setting committee are set to speak this week - most notable Chair Jerome Powell on Thursday. 

The central bank cut interest rates by 50 basis points last week, marking the beginning of an easing cycle that could see rates fall by as much as 125 bps this year. 

While the move had pushed Wall Street to record highs, overall gains were limited, given that the Fed held a less dovish medium to long-term outlook.

The central bank signaled neutral rates were likely to be much higher than those seen in the past. 

The pace of the Fed’s easing cycle is also expected to depend largely on the U.S. economy.

The PCE price index - the Fed’s preferred inflation gauge - is due Friday, and is set to offer more cues on interest rates. Inflation is still trending well above the Fed's 2% annual target.

Ahead of that, investors will be watching Monday for economic activity data on the service and manufacturing sectors, while US House Republicans have unveiled a new plan that would keep the government funded for three months and avoid a partial shutdown. Apollo to invest in Intel? 

In the corporate sector, Apollo Global Management has offered to make an investment of up to $5 billion in beleaguered chipmaker Intel (NASDAQ:INTC ), according to Bloomberg News.

The asset manager indicated that it would be willing to make an equity-like investment in Intel, the Bloomberg report said, with top management of the chipmaker considering the offer. 

Intel is struggling with a sharp decline in sales, and has previously outlined a series of cost-cutting measures, including reducing headcount by as many as 15,000 employees.  Crude gains on Middle East tensions 

Crude prices edged higher Monday, buoyed by concerns that heightened conflict in the Middle East may curtail regional supply. 

By 06:05 ET, the Brent contract had gained 0.2% at $73.83 a barrel, while U.S. crude futures (WTI) traded 0.3% higher at $71.19 per barrel.

Israel has carried out a number of strikes in Gaza and Lebanon, and the constant fighting has pushed up concerns that a bigger conflict in the Middle East will disrupt supplies, tightening global markets.  

Crude prices have seen a two-week rebound from near three-year lows, also boosted by supply fears in the wake of Hurricane Francine.

(Ambar Warrick contributed to this article.)

Source: Investing.com