Muted U.S. Stock Futures as Investors Eye Policymaker Comments and Economic Data

U.S. stock index futures remained subdued on Monday, with investors anticipating key comments from Federal Reserve officials and economic data. Following the Fed's recent easing cycle, major stock indexes posted gains in September. Markets await insights on interest rates and economic health, with inflation and consumer spending data under focus.

U.S. stock index futures showed little movement on Monday as investors awaited significant comments from a range of Federal Reserve policymakers and crucial economic data to determine the direction of interest rates and the economy's condition. This comes just days after the Federal Reserve initiated an easing cycle.

The Fed's recent decision on monetary policy provided a boost to Wall Street's main indexes, achieving monthly gains despite September historically being a weak month for equities. The S&P 500 is nearing an all-time high, while the Dow recently closed at a record high. However, concerns about high valuations remain.

As of 7:19 a.m. ET, Dow E-minis were up 17 points (0.04%), S&P 500 E-minis rose by 6 points (0.10%), and Nasdaq 100 E-minis increased by 34.75 points (0.17%). Last week, equity fund managers raised their net long positions in S&P 500 futures contracts.

This week features multiple Fed officials, including Chair Jerome Powell, offering their perspectives on monetary policy and economic outlook. On Friday, Governor Christopher Waller highlighted upcoming inflation data that could fall short of the Fed's 2% target, while Michelle Bowman noted persistent price pressures despite supporting a rate cut.

Minneapolis Fed President Neel Kashkari backed the recent rate cut and suggested further reductions by year-end. Traders are split on a November rate cut, with a slight preference for a 25 basis point reduction, according to CME Group's FedWatch tool.

Comments from Fed Presidents Raphael Bostic and Austan Goolsbee are also expected. UBS analysts noted that while the Fed made a strong case for the economy's stability, markets remain sensitive to weak economic indicators.

A preliminary survey on September manufacturing and services activity will be released at 9:45 a.m. ET, though the focus is on Friday's personal consumption expenditure data for August, the Fed's preferred inflation measure. Among notable stock movers, Intel rose 3.4% premarket after Apollo presented a $5 billion investment offer, while General Motors fell 2.4% following a downgrade by Truist Securities.

(With inputs from agencies.)