Stock futures are little changed as Wall Street gears up for potential Fed rate cut this week

Published On Dec 15, 2024, 6:03 PM

Stock futures showed little change as Wall Street prepares for a significant meeting of the Federal Reserve, where a rate cut is expected. The Dow has been struggling, losing 1.8% last week, continuing a streak of declines. The broader market rally appears to be narrowing, becoming concentrated in a few tech stocks, which has raised concerns about sustainability. This week, economic data will also be released, including purchasing managers' index readings, which could influence market movements. Additionally, Microstrategy's shares may be affected as it has been added to the Nasdaq 100 index.

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Stock Forecasts

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Positive

Given the anticipation of a Federal Reserve rate cut, which is generally positive for stocks, the market could see a slight uptick. However, with the Dow's recent decline and the narrowing breadth of the rally, investors should be cautious as a correction might be on the horizon, particularly if the market reacts negatively to the Fed's decisions or economic data releases.

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