Stock futures rise slightly with Fed set to kick off September meeting on Tuesday

Stock futures rose slightly on Tuesday morning as Wall Street looked to mount a modest rebound ahead of another rate hike by the Federal Reserve.

Futures linked to the Dow Jones Industrial Average rose 61 points, or 0.2 percent. S&P 500 futures added 0.22%, and the Nasdaq 100 added 0.27%.

The Federal Open Markets Committee will begin its September meeting on Tuesday, and central bankers will announce a 0.75 percentage point rate hike on Wednesday. Stocks have tumbled in recent weeks on comments from Fed Chair Jerome Powell and an unexpectedly warm consumer price index report in August, prompting traders to brace for even higher rates until inflation cools. .

“I think a lot was done last week to reset interest rate expectations,” said Angelo Korkafas, investment strategist at Edward Jones.

“The momentum in the equity markets is on the downside. … Until we establish that bottom. [inflation] readings, it will be difficult to reverse the heightened uncertainty and volatility we are seeing,” Korkafas added.

During a choppy trading session on Monday, Stocks rose in the afternoon to snap a two-day losing streak and recoup its recent losses. The Dow rose 197 points, or about 0.6 percent. The S&P 500 and Nasdaq Composite rose about 0.7% and 0.8%, respectively.

However, after the market closed on Monday, Ford announced that supply chain issues would cost the automaker dearly. An additional $1 billion in the third quarter. Shares fell 4.5 percent in extended trade.

On the economic front, investors will get a fresh look at the housing market on Tuesday morning with August reports on housing starts and building permits.