S&P futures exhibited minimal variation on Monday following the Nasdaq Composite’s achievement of a new record high, as investors prepared for an important Federal Reserve meeting scheduled for this week. Futures for the Dow Jones Industrial Average increased by 96 points, representing a 0.2% rise. S&P 500 futures increased by 0.1%, while Nasdaq-100 futures remained relatively unchanged.

Nvidia shares faced downward pressure at the beginning of the week following a statement from China’s market regulator indicating that the chipmaker had breached the nation’s anti-monopoly legislation. Beijing indicated that it would persist in its investigation of the AI darling. The stock experienced a decline of 2% prior to the market opening. The recent movements follow a robust week for the major averages. The Nasdaq Composite achieved a record close, increasing by 2% for its second consecutive week of gains. The S&P 500 experienced a 1.6% increase, marking its most favorable weekly performance since early August. The Dow concluded its initial positive week in three.

The robust increases follow the most recent economic indicators revealing a softening labor market and subdued inflation, which have fueled expectations that the Federal Reserve may lower interest rates upon the conclusion of its meeting on Wednesday. The market currently reflects a 96% probability that the central bank will reduce interest rates by a quarter percentage point, while the likelihood of a more substantial half percentage point cut stands at a modest 3.6%. “All sorts of flags are leaning toward the Fed putting in a 25 basis point cut in here,” remarked Mark Malek, investment chief at Siebert Financial. Lower rates may persist in bolstering the stock market, which has benefited from investor optimism regarding artificial intelligence, even in the face of potential risks to the economic outlook.

Market participants will be closely monitoring the Senate proceedings to determine whether Stephen Miran will be officially appointed as a Fed governor prior to this week’s FOMC meeting. On Monday, the Empire State Manufacturing Index is set to be released. Economists surveyed by Dow Jones anticipate a figure of 4.5, significantly reduced from the prior reading of 11.9.