Stock futures rose slightly on Tuesday morning as Wall Street looked to take advantage of a modest rebound ahead of another rate hike from the Federal Reserve.
Dow Jones Industrial Average futures rose 61 points, or 0.2%. S&P 500 futures added 0.22% and those of the Nasdaq 100 rose 0.27%.
The Federal Open Markets Committee begins its September meeting on Tuesday and central bankers are expected to announce a rate hike of 0.75 percentage points on Wednesday. Stocks have fallen in recent weeks as comments from Fed Chairman Jerome Powell and a surprisingly hot August consumer price index report prompted traders to brace for even higher rates until inflation cools.
“I think last week a lot of work was done to reset interest rate expectations,” said Angelo Kourkafas, investment strategist at Edward Jones.
“Equity market momentum is down. … Until we establish this downside pattern [inflation] readings, it is going to be difficult to reverse this high uncertainty and volatility that we are seeing,” Kourkafas added.
During a choppy trading session on Monday, shares rose in the afternoon to break a two-day losing streak and recoup some of their recent losses. The Dow gained 197 points, or about 0.6%. The S&P 500 and the Nasdaq Composite gained about 0.7% and 0.8% respectively.
However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker a Another $1 billion in the third quarter. The shares fell 4.5% in extended trading.
On the economic front, investors will get a fresh look at the housing market Tuesday morning with August housing starts and building permits reports.