S&P 500 futures are flat, Nasdaq futures are down as Apple shares decline: Live updates

S&P 500 futures were little changed Monday morning as investors await the Federal Reserve‘s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020. Meanwhile, a pullback in tech giant Apple weighed on Nasdaq futures.

Futures tied to the broad market index slipped around 0.1%, while futures tied to the Dow Jones Industrial Average rose 97 points, or 0.2%. Meanwhile, Nasdaq-100 futures fell 0.5%.

Apple shares declined more than 2% in early trading after analysts at firms, including Bank of America and JPMorgan, noted that shipping times could point to lighter demand for iPhone 16 Pro models than the prior year.

The S&P 500 is less than 1% away from its July record and could notch a new all-time high this week. After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green, with the S&P 500 and tech-heavy Nasdaq Composite just closing their best week of 2024.

The Fed is set to meet on Tuesday and Wednesday and are widely anticipated to make their first interest rate cut since they began hiking rates in March 2022. A cut this week would be a pivotal move, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth — boosting economic growth.

The overnight lending rate is currently at 5.25% to 5.5%. Traders are split on whether the central bank will cut rates by 25 or 50 basis points, per the CME Group’s FedWatch tool.

Stocks typically post strong gains during cycles where initial rate cuts are able to sustain economic expansion, BMO Capital chief investment strategist Brian Belski said.

“So long as nothing breaks in the economy, U.S. stocks remain firmly within a bull market, but with significantly strong trailing one-year performance headed into this initial rate cut, future gains are likely to be more muted relative to historical norms, in our view,” he said in a Friday note ahead.