U.S. stock futures remained stable early Tuesday as investors absorbed two consecutive days of market gains while looking ahead to the Federal Reserve’s upcoming policy decision.
Futures linked to the Dow Jones Industrial Average (YM=F), S&P 500 (ES=F), and Nasdaq Composite (NQ=F) hovered near the flatline, reflecting a cautious tone as traders awaited the Fed’s next move on interest rates.
Markets Rebound After Last Week’s Sell-Off
Monday’s session saw stocks continue their recovery from last week’s sharp downturn, which pushed the S&P 500 into correction territory amid concerns over the resilience of the U.S. economy in the face of President Donald Trump’s escalating trade war.
Investors now turn their attention to the Federal Reserve’s two-day policy meeting, which begins Tuesday and concludes Wednesday with an interest rate decision. Fed Chair Jerome Powell has signaled a data-dependent approach to monetary policy, with most analysts expecting the central bank to hold rates steady for now.
Additionally, fresh economic data will be in focus, including the Commerce Department’s housing starts report for February, due for release on Tuesday.
Gold Holds Near Record Highs Amid Economic Uncertainty
Meanwhile, gold prices remain elevated, hovering near the all-time high of $3,000 per ounce as investors seek safe-haven assets amid continued market volatility.
Gold futures (GC=F) edged 0.51% higher to $3,021.40 per ounce late Monday, following a 0.6% gain earlier in the day. The metal’s appeal has strengthened as U.S. economic indicators, including weaker-than-expected retail sales data, have fueled concerns over a slowing economy.
Despite a lack of signs pointing to a major pullback in consumer spending, investors remain cautious. Declining Treasury yields have further supported gold’s strength, as lower yields reduce the opportunity cost of holding non-interest-bearing assets like bullion.
With global uncertainty persisting, major banks have raised their gold price targets, reflecting expectations that the metal’s rally could extend further in 2024.
As markets await the Fed’s policy announcement, traders remain focused on the central bank’s outlook for interest rates and economic growth, both of which could have significant implications for equities, commodities, and the broader financial landscape.
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