U.S. stock futures declined slightly Sunday night following a strong week on Wall Street, where the S&P 500 achieved its longest positive streak in two decades.
Futures linked to the S&P 500 dropped approximately 0.4%, while Dow Jones Industrial Average futures and Nasdaq-100 futures each fell by 0.3%.
The broad market index advanced nearly 1.5% on Friday, marking its ninth consecutive day of gains — its longest winning streak since November 2004. This recovery erased all losses since April 2nd. The Nasdaq Composite gained 1.5% on Friday, and the Dow industrials rose nearly 1.4%.
Market sentiment bolstered around optimism around a potential U.S. trade deal with major partners. The Wall Street Journal reported Chinese authorities are considering initiating trade negotiations with the U.S. However, no official agreements have been announced.
Ryan Dykmans, Chief Investment Officer at Dunham & Associates Investment Counsel, noted that this market rally seemed driven more by excitement than solid fundamentals or tangible changes.
Meanwhile, Wall Street looks toward the Federal Reserve’s two-day policy meeting expected to start Tuesday. According to the CME Group’s FedWatch tool, there is only a 3.2% chance of a rate cut.
Nonetheless, traders will closely monitor any comments from the Fed or Chair Jerome Powell regarding the economic outlook amidst trade war uncertainties.
