Wall Street started the week with a slight decline as investors awaited the Federal Reserve's upcoming policy decision and new inflation data. Futures for the S&P 500 and the Dow Jones Industrial Average both dipped slightly before the opening bell.
The Federal Reserve is expected to announce its latest interest rate policy decision at the conclusion of its two-day meeting on Wednesday. Despite efforts to control inflation with high interest rates, the central bank is likely to maintain its benchmark rate due to ongoing inflationary pressures.
The robust labor market has supported consumer spending and the overall economy, presenting a dilemma for the Federal Reserve in considering potential interest rate cuts.
Recent economic indicators suggest a cooling economy, with May's manufacturing data showing contraction, weaker-than-expected worker productivity, and declining job openings.
Following a better-than-expected jobs report last week, investors reduced expectations of a rate cut at the Fed's July meeting.
Upcoming data releases on consumer and producer prices will provide further insights into the economic landscape.
Apple is set to unveil its foray into artificial intelligence at its developers conference, with a focus on enhancing its virtual assistant, Siri. Rumors suggest a collaboration with OpenAI to integrate AI features into Apple products.
Southwest Airlines saw a surge in its stock price after reports of activist investor Elliott Investment Management acquiring a significant stake in the airline and advocating for changes.
In Europe, the euro weakened following French President Emmanuel Macron's decision to dissolve the National Assembly after setbacks in parliamentary elections. Far-right parties made gains, prompting a snap election and impacting the euro's value.
Asian markets displayed mixed results, with Japan's Nikkei 225 rising while South Korea's Kospi declined. Markets in China, Hong Kong, Australia, and Taiwan were closed for holidays.
In commodity markets, U.S. benchmark crude oil and Brent crude both saw modest gains. The U.S. dollar strengthened against the Japanese yen.
On Friday, major U.S. stock indices experienced slight declines, reflecting market uncertainties.
