Nasdaq, S&P 500 Futures Edge Up As September Fed Meeting Looms Large - Tesla On Track To Reclaim $400 Level

U.S. index futures are holding barely up early Monday as the spotlight shifts to the two-day Federal Open Market Committee (FOMC) meeting that kicks off on Tuesday. Traders may choose to tread with caution, although they have baked in at least a 25 basis-point cut at the upcoming meeting.

The market may also keep an eye on the ongoing trade talks between the U.S. and China, their fourth round of negotiations on tariffs, in Madrid. Trade and TikTok were the main topics of discussion, with talks continuing for a second day on Monday. 

Volatility cannot be ruled out in a triple witching week, when three major types of financial derivative contracts-stock index futures, stock index options, and stock options-expire simultaneously.

Among individual stocks, Tesla, Inc. (TSLA) appears on track to retest the $400 level for the first time since late January.

As of 1:40 a.m. ET on Monday, the Dow, S & P 500, and Nasdaq 100 futures all climbed about 0.10%.

The S & P 500, a measure of broader market performance, climbed for a second straight week in the week ended Sept. 12, riding high on rising odds of a rate cut. Benign inflation data and signals pointing to a setback to the labor market led traders to believe that the Fed will resume its rate cuts for the first time this year.

Preliminary annual revisions to the jobs data reported for the 12 months ended March 2025 showed a bigger-than-expected cut to the previously reported numbers, and the weekly jobless claims data for the recent reporting week spiked sharply.

All the major averages recorded fresh highs on Thursday before the S & P 500 index and the Dow Jones Industrial Average retreated from the peaks on Friday. The Nasdaq Composite and the Nasdaq 100 Index set fresh highs yet again in Friday's session.

The SPDR S & P 500 ETF (SPY), an exchange-traded fund (ETF) that tracks the S & P 500 Index, and the Invesco QQQ Trust (QQQ) jumped 1.57% and 1.84%, respectively, for the week. The SPDR Dow Jones Industrial Average ETF Trust (DIA) and the Shares Russell 2000 ETF (IWM) rose 0.95% and 0.24%, respectively.

Apart from the Fed meeting, the week features a fair share of economic data that could shape investor expectations regarding the economic and monetary policy outlook.

These include the New York and Philadelphia Feds' manufacturing surveys for September, which give the first glimpse into manufacturing conditions for the month, the August retail sales report, the weekly jobless claims data and Fed speeches as the central bank's blackout period ends.

Hain Celestial (HAIN) and Dave & Buster's (DAVE) are due to announce their quarterly reports on Monday.

Oil futures edged up early Monday, while gold futures retreated further away from their record. The 10-year U.S. Treasury note yield stayed above the 4% psychological mark despite the rate cut chatter.

The U.S. dollar treaded water ahead of the all-important Fed meeting. 

Asian stocks went about in a lackluster manner as domestic traders preferred to sit out the Fed meeting. The Japanese market remained closed on account of the“Respect for Aged Day” public holiday.

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