U.S. stock futures were little changed Monday, holding near record levels as the latest employment data shifted expectations for Federal Reserve policy and energy prices remained below their recent peaks.
Futures tied to the S&P 500 and Dow Jones Industrial Average traded broadly flat after the indexes reached record levels, while Nasdaq 100 futures were also little changed.
The subdued start followed Friday’s U.S. employment report, which showed that nonfarm payrolls unexpectedly declined in July. The weaker reading added a new factor to the outlook for monetary policy after divisions emerged among Federal Open Market Committee members at the Federal Reserve’s latest meeting.
Interest-rate futures now indicate a slight majority probability that the Federal Reserve will leave rates unchanged at its next policy meeting, reflecting a shift in expectations following the labor market data.
Energy prices also remained in focus. Fuel costs stayed below recent highs despite continued risks of disruptions to oil supplies from the Persian Gulf, limiting some of the inflationary pressure associated with higher energy prices.
Technology shares were mixed to higher in premarket trading. Meta and Amazon advanced following indications of continued demand for cloud computing services.
Intel moved in the opposite direction, falling more than 3% in premarket trading following plans involving approximately $15 billion in stock issuance.
The combination of softer employment data, changing interest-rate expectations and developments in global energy markets is setting the backdrop for U.S. equities at the start of the week.
