S&P, Nasdaq, Dow futures edge down as Fed enters quiet period

Stock index futures pointed to a lower open Monday in what is expected to be a relatively quiet week for stocks ahead of next week’s Fed meeting.

S&P futures (SPX) -0.5%, Nasdaq 100 futures (NDX:IND) -0.4% and Dow futures (INDU) -0.4% were down.

Oil (CL1:COM) was higher. OPEC+ kept its output unchanged at the latest meeting, but Russia said it won’t accept a G7 oil price cap.

The 10-year Treasury yield (US10Y) was up 1 basis point to 3.50%. The 2-year yield (US2Y) rose 4 basis points to 4.32%.

It’s “fascinating that at the moment the market is focusing squarely on the very strong likelihood that we’ll ratchet down to ‘only’ a 50bps hike next week and extrapolating that level of dovishness rather than focus on any risks that the terminal rate could end up being nearer say 6% than 5%,” Deutsche Bank’s Jim Reid said. “Indeed Larry Summers was doing the rounds over the weekend suggesting that markets were likely under-pricing terminal and seemingly being more comfortable suggesting a peak nearer 6 than 5%, even if he wasn’t specific over a particular number.”

On the economic calendar, the November ISM services index comes out shortly after the start of trading. Economists expect a dip to 53.3.

At the same time October factory orders arrive, with the forecast for a 0.7% rise, up from 0.3% the month before.

Among active stocks, Wynn Resorts rose as Chinese cities eased some COVID restrictions.