Fed Meeting: Stock Futures Drift After Record Highs – What Apple’s AI Event Means for the Market

New York, NY – Stock futures in the U.S. dipped slightly on Tuesday, indicating a potential pullback from recent record highs as investors anticipated the Federal Reserve meeting that could shed light on the future of interest rates.

The S&P 500 and Nasdaq 100 futures both showed a decrease of about 0.3%, following their previous attainment of all-time closing highs. Additionally, Dow Jones Industrial Average futures saw a decline of 0.4%.

Market uncertainty about whether the economy is overheating or slowing down has created a challenging environment for investors. Conflicting data has cast doubt on the Federal Reserve’s initial projections for three rate cuts in 2024, with many now anticipating only one decrease before the year concludes.

The two-day Fed policy meeting commencing on Tuesday is expected to result in borrowing costs being maintained at their current two-decade high. Investors will be closely monitoring any hints regarding the timing of potential rate cuts, with September or November being mentioned as possible dates.

Investors are also keeping an eye on forthcoming consumer price data scheduled for release on Wednesday, as this data plays a significant role in the Fed’s decision-making process. Apple shares remained in negative territory after experiencing losses post the company’s recent AI platform announcement, while Eli Lilly shares saw a boost following positive feedback for their Alzheimer’s treatment from an FDA advisory panel.

In relation to Apple’s recent AI event, analysts hold differing views on the impact it may have on the company’s stock value. While there is praise for the technology showcased, concerns linger about whether this will be enough to prompt a substantial uptick in iPhone upgrades. With conflicting opinions ranging from expectations of a significant device upgrade cycle to a view that the event may not meet bullish expectations, Apple’s stock experienced a slight decrease in premarket trading.