Wall Street drifted lower early Monday following last week’s rally as investors awaited further indications as to when the Federal Reserve might begin cutting interest rates, the Associated Press reports.
Futures for the S&P 500 fell 0.3% before the bell, while futures for the Dow Jones Industrial Average lost 0.2%.
Last week, Federal Reserve officials signaled that they still expect to cut their key interest rate three times in 2024, fueling a rally on Wall Street, despite signs that inflation remained elevated at the start of the year.
For now, central bank officials kept their benchmark rate unchanged for a fifth straight time.
Later this week, the government releases its consumer spending report, which includes a measure of inflation that is closely monitored by the Fed. On Tuesday, the Conference Board issues its consumer confidence report for March.
In corporate news early Monday, Boeing shares rose 4% after it announced that CEO Dave Calhoun was stepping down from the troubled aircraft maker at the end of 2024. A series of safety problems tied to manufacturing issues has drawn the attention of federal regulators, the most recent being a blown out panel of an Alaska Airlines jetliner in January.
Boeing, whose shares are down 25% so far this year, announced that its head of commercial airplanes was retiring and that its board chairman was also stepping down.
Shares of United Airlines tumbled 2.3% in premarket on news that federal regulators will increase their oversight of the Chicago carrier. The company made the announcement Friday following a series of recent issues including a piece of the outer fuselage falling off one jet, an engine fire, and a plane losing a tire during takeoff.
Some companies on tap to report earnings this week are video game retailer GameStop, cruise ship operator Carnival, and drugstore chain Walgreens.
On Friday, the S&P 500 slipped 0.1% from an all-time high, while the Dow Jones Industrial Average fell 0.8%. The Nasdaq composite rose 0.2%, setting another record.
