Investors price in a high probability the Federal Reserve will leave interest rates unchanged at its July meeting.
Dow Jones futures climbed 0.14% to 52,450 in early European trading Monday, reflecting growing market confidence the Federal Reserve will hold rates steady in July. S&P 500 and Nasdaq 100 futures followed, rising 0.26% and 0.50% to 7,520 and 28,920, respectively.
Traders have increasingly priced in a pause after recent inflation data showed signs of cooling, aligning with the Fed’s target range. The central bank last raised rates in May, and markets now assign a near-90% probability to no change in July, according to CME FedWatch Tool.
Equities have rallied in recent weeks on expectations of a less aggressive monetary policy stance, with major indices nearing record highs ahead of key economic releases later this week.