Dow Jones, S&P500, Nasdaq 100 futures steady as investors await Fed decision after Nasdaq’s record close

US stock futures were flat Sunday evening as Wall Street turned its attention to a pivotal Federal Reserve meeting later this week.

Futures attached to the Dow Jones Industrial Average (YM=F) , S&P 500 (ES=F), and Nasdaq 100 (NQ=F) all hovered around the baseline.

The muted moves come after the major averages logged a strong week. The Nasdaq Composite (^IXIC) notched a fresh record, climbing 2% for back-to-back weekly gains. The S&P 500 (^GSPC) advanced 1.6%, its best weekly showing since early August, while the Dow (^DJI) snapped a two-week losing streak with a modest gain.

Weak labor market signals coupled with price increases have increased expectation that the Federal Reserve will move forward with an interest rate cut at Wednesday’s policy meeting. Fed funds futures are now pricing in a 96% chance of a quarter-point cut ahead of the upcoming rate decision.

A rate cut could provide another tailwind for equities, particularly as AI enthusiasm continues to drive market sentiment, despite spreading fears of an AI bubble. Traders will also be watching whether Stephen Miran is sworn in as a Fed governor in time to participate in this week’s FOMC vote.

Earnings season is in its final stretch, but a few high-profile names are still set to grab the spotlight. FedEx (FDX) takes center stage, with investors treating its results as a bellwether for global trade flows and the broader US economy. Cracker Barrel (CBRL) is also on deck, fresh off buzz around its branding shake-up.