US futures move away from records with Fed decision leading the way

U.S. stock futures drifted lower on Tuesday, setting the stage for a pullback from record highs as investors awaited the start of a Federal Reserve meeting that is expected to indicate where interest rates will move. interest.

Futures for the tech-heavy S&P 500 () and Nasdaq 100 () both fell about 0.3% after hitting all-time closing highs. Dow Jones Industrial Average futures fell 0.4%.

Stocks have managed to advance amid market uncertainty about an economy that could be too hot or too cold for comfort. A string of inconclusive data has fueled skepticism about the likelihood of three rate cuts in 2024, as the Fed considered in March. Many investors now expect just one reduction before the end of the year.

The Fed’s two-day policy meeting that begins Tuesday is expected to end with borrowing costs held at their highest level in two decades. Investors will keep an eye out for clues on when a shift to cuts will take place, with September or November in the frame.

Learn more: How does the labor market affect inflation?

Investors calculating the odds of a rate cut are also eagerly awaiting May consumer price data, due Wednesday, given its crucial role in the Fed’s deliberations.

Meanwhile, shares of Apple (AAPL) remained in the red after losses following the iPhone maker’s big AI debut. On the other hand, shares of Eli Lilly (LLY) jumped after the drugmaker’s early treatment for Alzheimer’s disease gained unanimous support from a panel of FDA advisers.